POSCO PLANTEC S POSCO PLANTEC Technology Sustainability

SustainabilityReport 2010

Shaping a Beautiful and Flourishing World Powered by POSCO PLANTEC Technology

POSCO

PLAN

TEC Sustainability Report 2010

POSCO

PLAN

TEC Sustainability Report 2010

Head Office322-4, Jangheung-dong, Nam-gu, Pohang, North Gyeongsang Province

TEL +82-(0)54-279-7114 FAX +82-(0)54-279-7999

Gwangyang Project Division1656-4, Taein-dong, Gwangyang, South Jeolla Province

TEL +82-(0)61-798-3114 FAX +82-(0)61-792-2691

Global Project Division3rd floor, POSCO SS&CC Tower, 748-4, Banpo-dong, Seocho-gu, Seoul

TEL +82-(0)2-2186-7340 FAX +82-(0)2-2186-7333

POSCO PLANTEC was launched as a professional engineering service

provider through the integration of two steel facilities maintenance

companies in January 2010. This new start encouraged us to be aware of

the importance of sustainability management and to publish our first-ever

sustainability report in order to meet our social responsibility in accordance

with the ISO 26000 international standard on social responsibility.

Characteristics of This Report POSCO PLANTEC plans to issue its sustainability reports on an annual

basis. Our sustainability reports aim to transparently disclose our

achievements on stakeholder engagement and 7 core subjects regarding

corporate social responsibility according to ISO 26000 procedures.

Reporting Period, Scope and BoundaryThis report contains our performance data from January 1, 2010 to

December 31, 2010. For critical business activities, the reporting period was

expanded to June 30, 2011.

This report covers data at the POSCO PLANTEC head office and business

sites in Korea and abroad.

Reporting StandardsWe report against the Global Reporting Initiative (GRI) G3.1 Guidelines.

Newly published in the first half of 2011, the GRI G3.1 is the latest version

of the international sustainability reporting standards and puts greater

emphasis on human rights aspects than its previous G3 guidelines.

The economic performance data for 2010 were generated based on local

corporate accounting standards in Korea, 2011 data followed International

Financial Reporting Standards (IFRS). The environmental and social

performance data were produced following the management standards

adopted by POSCO family companies.

AssuranceThis report was assured in accordance with ISO 26000, the GRI G3.1

Guidelines and AA1000 Assurance Standard 2008. The Korean Standards

Association (KSA), an independent third-party assurance provider, verified

that the report meets the requirements of the A+ Application Level of the

GRI G3.1 Guidelines.

For More InformationThis report is available both in Korean and English and can be downloaded

at the POSCO PLANTEC website (http://www.poscoplantec.co.kr).

For more information on our sustainability management practices and

relevant in-house and external activities, please visit our website. For

reports on our business operations, you may access the Korean Financial

Supervisory Service's electronic disclosure system (http://dart.fss.or.kr).

9

10

Shared growth

Shared growth with partnersShared Growth 22

3

6

1 1

18

21

Extension of product and service liabilities

Diversified and demanding needs of customer companies

Customer information protection and security

Customer health and safety

Customer satisfaction activities and provision of product information

Creation of Customer Values 24

13 Quality of conditions of work Employees 26

14

16

Guarantee of fair employment and employment relationships

Growing significance of employee rights and rolesLabour 28

4 Protection of occupational health and safety Health and Safety 30

27

28

31

Creation and distribution of profits

Contributions through technical expertise, functionalities and application to local communities

Provision of job creation opportunities

Community Involvement and Development 32

2

19

Acceleration of technology development

Increasing competitionTechnology Innovation 36

29

30

Sustainable use of resources

Depletion of natural resources New Growth Business 38

17 Employee training and capacity building Talent Development 40

Overview

7 Increasing globalization and interconnectivity Sustainability Management Framework / Vision 2020 14

15 Social influences Corporate Governance 16

20 Fair competition Fair Trade 17

5

22

Prevention of corruption

Legal complianceEthics Management 18

Our Sustainability Management System

Our Open Management

Our Creative Management

23 Low-carbon green growth policies Global Environmental Management 44

12 Increasing environmental pollution and waste Environmental Pollution Prevention Project 45

25 Prevention of environmental pollution Climate Change Response 46

24 Reduction of energy consumption and use of renewable energy PV Project 48

Our Environmental Management

CON

TEN

TS

Other Performance Data 51

Third-Party Assurance Statement 52

ISO 26000 Performance Report 54

ISO 26000 Compliance Performance 55

GRI G3.1 Index 56

Company History & Awards 59

Reader’s Feedback Survey 61

APPENDIX

AB

OU

T T

HIS R

EPOR

T

POSCO PLANTEC welcomes your candid feedback on our business

operations. For any suggestions or questions, please contact us on the

details below.

POSCO PLANTEC ISO26000 Task Force Team

Phone: +82-(0)54-279-7451

Fax: +82-(0)54-279-7999

E-mail: [email protected]

CEO Message 02

Sustainability Achievements 04

1 Expansion of emerging markets Company Overview 06

8 Speedier communication Stakeholder Communication 09

26 Consideration of stakeholder opinions Materiality Test Process 10

Priority Major Issues

02 03POSCO PLANTEC SUSTAINABILITY REPORT 2010 OVERVIEW

Challenge! Change! Create!

for Happiness Shared with

Customers

Great Partner in the Plant World

POSCO PLANTEC aims to grow into a top-class multinational engineering company with the vision as a Great Partner in the Plant World. We are dedicated to delivering the greatest-possible customer satisfaction and sustainability values through exceptional engineering quality and services.

Initially born as a subsidiary of POSCO, a world’s top-performing steel maker, in 1982, POSCO PLANTEC made a fresh new start as

a professional engineering company in January 2010 via the integration of POSCO Machinery & Engineering Co., Ltd. and POSCO

Machinery Co., Ltd. with the wealth of experience and know-how on steel facilities maintenance. We established the Total Engineering

Process spanning from design and procurement to manufacturing and construction based on the technology and experiences we have

accumulated over the years. We are now moving beyond traditional business domains of steel facilities, industrial facilities, logistics

facilities and machinery manufacturing into new horizons of green growth business and power plant facilities.

With our vision of ‘Great Partner in the Plant World’, we have put ourselves on the right track to evolve into a globally-renowned

engineering company and also initiated sustainability management to deliver social and environmental values in order to become a

company that grows sustainably and to win the heart of our customers.

In particular, the ISO 26000 Task Force Team was newly created in May 2011 to incorporate the ISO 26000 standard for corporate social

responsibility into our conduct of business and to ensure the way our employees think and work could meets global standards. As part of

such efforts, we issue sustainability reports and help our employees enhance their capacity regarding corporate social responsibility.

The 7 ISO 26000 core subjects of organizational governance, human rights, labour practices, the environment, fair operating practices,

consumer issues, and community involvement and development will be built into our corporate practices with due consideration of

the business environment where we operate via the Corporate Strategic Planning Group, Talent Creation Group, Human Resources

Collabouration Group, Environment & Safety Group, Corporate Audit Department, Win-Win Growth Group, and Human Happiness &

Satisfaction Group.

At POSCO PLANTEC, we believe that our sustainability comes from the best-possible engineering quality and services that lead to the

greatest-possible sustainability values delivered to our customers.

With our outstanding technology, top quality talents and pursuit of mutually beneficial growth with partner companies, we will

continue to assist our customers in enhancing their sustainability and competitiveness.

Reduction of green house gas emissions via green growth initiatives is emerging as a key factor that defines the global economic

paradigm in a totally different manner. We have been fully aware of this undeniable change in time and continued to invest in such

green energy business areas as photovoltaics and wind power for a greener future. These far-sighted endeavors have led to not only

increased cost competitiveness and profitability but also meaningful reductions in GHG emissions.

POSCO PLANTEC initiated its sustainability management in 2010 and issues its first-ever sustainability report in a bid to grow into a

true multinational company recognized for its contributions towards a beautiful and flourishing world.

We hope that this report would present an invaluable opportunity to communicate with all our stakeholders including customers, local

communities, shareholders and employees and we ask for your continued interest and support in the upcoming years. Thank you.

CEO MESSAGE

October 2011

Chang-hwan Cho

CEO of POSCO PLANTEC

POSCO PLANTEC

Getting Started

with Sustainability

Management

Delivering the

Greatest-possible

Sustainability

Values to Customers

Company Working

Towards a Beautiful and

Flourishing World


POSCO PLANTEC’s sustainability management started in 2010 in accordance with ISO 26000 and we have been making wide-ranging

achievements on ISO 26000’s social responsibility integration processes and 7 core subjects of organizational governance, human rights,

labour practices, the environment, fair operating practices, consumer issues and community involvement and development.

2010 SUSTAINABILITY ACHIEVEMENTS

EnvironmentInitiation of the photovoltaice plant

construction in Sicily, Italy

(Sep. 2010)

Certified with ISO 14001 for

environmenal management systems

(Nov. 2010)

Launching the Green Start campaign to declare

and achieve the goal of reducing green house gas

emissions and waste by 5% (Mar. 2011)

Social Responsibility Integration Processes

Economy

Organizational Governance

Human Rights

Labour Practices

Fair Operating Practices

Consumer Issues

Community Involvement and Development

Creation of the ISO 26000 Task Force Team to lay the basis for

sustainability management

(May 2011)

CSR playing a stronger role in BOD’s CSR decision-making process

(May 2011)

Establishment of the Shared-Growth/

Innovation Support Team

(Nov. 2010)

Declaration of quality management to deliver

the highest-possible quality

(Dec. 2010)

Prohibition of Discrimination(Regular/non-regular employees, male/female employees, physically-challenged/able-bodied employees guaranteed equal treatment in terms of pay, compensation, promotion and welfare benefits)

(May 2011)

Continued increase in the number

of female employees

(May 2011)

Company-wide ‘Tearing Down the Wall

Workshop’ to offer a venue for enhanced

communication among employees

(Jul. 2010)

Holding the “Harmony Concert

with Poetry and Music”

joined by local people

(Jun. 2010)

『Zero Tolerance for Safety Accidents』

campaign to respect the human life

(Feb. 2011)

Donating 8,200 pieces of clothing

to Timor-Leste

(Mar. 2011)

First-ever female member of the Labour

Management Council to advance the

labour-management culture

(Oct. 2010)

One Company One Mountain campaign

to clean up Unje Mountain and restore

animal habitats-Community Involvement

and Development (Mar. 2011)

Rated 『Excellent』 in Triangle Cooperation

Program compliance evaluations

(Jun. 2010)

Foundation of the Research &

Development Center

(Dec. 2010)

Social Achievements

Holding the Mega-Y kick-off event to enhance the

productivity of the Material Handling System

(MHS) by 30%

(Mar. 2011)

Ground-breaking ceremony for the

66,000 m2 machining and manufacturing

shop in the No. 2 Industrial Complex at

Pohang New Port (Mar. 2011)

Our Baggage Handling System assisting

Incheon International Airport in winning

the title of the Best Airport Worldwide for 6

consecutive years (Feb. 2011)

Social Responsibility

Economic Profitability

Environmental Soundness

Three CSR Perspectives

* CSR : Corporate Social Responsibility

Environmental Achievements

Economic Achievements


COMPANY OVERVIEW

POSCO PLANTEC started as a steel maintenance service provider in 1982 and was reborn as a professional engineering company through the

integration of POSCO Machinery & Engineering Co., Ltd. and POSCO Machinery Co., Ltd. in January 2010.

We are to become a partner of choice that successfully addresses customer needs by delivering better technology and quality and enhancing our E.P.C.

capabilities to global standards. Besides, we constantly strive to shape a beautiful and flourishing world powered by POSCO PLANTEC technology.

Organizational Chart We have 7 Divisions, 1 Research & Development Center, 2 Branches, 2 Offices, 21 Departments, 12 Groups, 7 Task Force Teams, 11 Teams, and

4 Shops. We established the Talent Creation Group and the Technology Creation Group to move beyond conventional ways of developing talents and technology that serve

as the bedrock in securing world level engineering competitiveness and to build creative capacities into our conduct of business. Other newly launched organizational units

include the Win-Win Growth Group to seek shared growth with local communities, the Green Energy Business Department for green growth business, the Quality Innovation

Group for quality management, safety management, environmental management and ethics management, the Information Protection Group, the Environment & Safety

Group, and the Corporate Audit Department. In particular, the ISO 26000 Task Force Team was created to facilitate systemized operations of sustainability management.

POSCO PLANTEC’s Representative Brand ‘Tikhan’

We launched our own Material Handling System (MHS) brand ‘Tikhan’

for the first time in Korea in May 2010. MHS facilities are responsible for

unloading, transporting and transferring various industrial materials for

steel mills and power plants.

TiKhan is the compound word made from the words Tiger and Khan

which means monarch. It describes the head of tigers who overpowers

lions with remarkable leadership and dominates the safari world. Tigers

have traditionally been a symbol of strength and wisdom and thus TiKhan

represents our determination to become the top performer in the MHS

market with our strong capabilities and sophisticated and established

technical expertise.

We also plan to launch another new brand for our precipitators which are

used to eliminate various harmful gases and particles in

the industrial sites in the second half of 2011.

Company Name POSCO PLANTEC CEO Chang-hwan Cho

Date of Establishment April 1, 1982 Capital KRW 27 Billion

Head Office 322-4, Jangheung-dong, Nam-gu, Pohang City Shareholder Wholly owned by POSCO Ltd.

Organizational Structure

7 Divisions, 1 Research & Development Center, 2 Branches, 2 Offices, 21 Departments, 12 Groups, 7 Task Force Teams, 11 Teams and 4 Shops No. of Employees 626 persons

Representative Brand TiKhan *TiKhan, the compound word formed from the words ‘Tiger’ and ‘Khan’, is the representative brand for our Material Handling System.

Company Profile

Category (Unit: KRW 100 Million) 2009 2010 2011 Target

Orders(Percentage of POSCO orders) 3,024(17) 6,966(23) 10,000(32)

Sales 4,316 4,395 6,381

Operating Profit △123 149 191

Net Profit △92 154 152

Business Results (Profits and Losses)

Business Sites and Shop Names Business Details Location

Head Office Industrial plant design, component manufacturing and machining, machinery installation, design, manufacturing and installation of industrial facilities

322-4 Jangheung-dong, Nam-gu, Pohang City, North Gyeongsang Province

GwangYang Project Division

1656-4 Taein-dong, Gwangyang City, South Jeolla Province

New Port Machining and Manufacturing Shop

Manufacturing of machine structures and components

863 Yonghan-ri, Heunghae-eup, Buk-gu, Pohang City, North Gyeongsang Province

Pohang Industry Machinery Shop

B.C Roller, manufacturing of machine structures and components

558-3 Goedong-dong, Nam-gu, Pohang City, North Gyeongsang Province

POSCO PLANTECH Malaysia K. L Branch

Manufacturing of floodgates B-2-2, Megan Avenue 1, 189, Jalan Tun Razak 50400, Kuala Lumpur, Malaysia

POSCO PLANTECH Taiwan Branch

Installation of belt conveyer facilities

POSCO Plant Engineering CO., Ltd. 6F., No.166, Shihjhong 1st Rd., Cianjin District, Kaohsiung City 80148, Taiwan ( R.O.C.)

Green Energy Business Department POSCO PLANTECH Rome Office

Photovoltaics business 15, Via delle Quattro Fontane 00187 Rome, Italy

Business Markets

ITALY

INDIATAIWAN

CHILE

MALAYSIA

TIMOR-LESTE

KOREA

Global Project Division

Incheon Office

GwangYang Project Division

Head Office (Pohang)

Category Value (KRW 100 Million) Percentage (%)

▒ Steel Facilities 1,841 41.89

▒ Logistics Facilities 1,098 24.98

▒ Industrial Facilities 659 14.99

▒ Industrial Machinery 420 9.56

▒ New Green Growth 377 8.58

Total Sales 4,395 100

Business Areas

4,395(KRW 100 Million)

Sales

Data on Major Overseas Projects

ITALY Photovoltaic power plant KRW 94.3 Billion

• Ordering Client: Sky global and 11 other companies

• Period: Sep. 2010-Jun. 2011

• Capacity: 20MW (Sicily 3.7MW, Abarozzo 1.8MW)

INDIA Baggage handling facilities at Delhi Airport KRW 2.8 Billion

• Ordering Client: Siemens

• Period: Jul. 2008-May 2009

MALAYSIA BAKUN Dam floodgate facilities KRW 47.4 Billion

• Ordering Client: Sarawak Electricity Supply Corporation

• Period: Jul. 2004-May 2011

POSMIT Coil Center KRW 2.5 Billion

• Ordering Client: Sarawak Electricity Supply Corporation

• Period: Aug. 2008-Apr. 2009

TAIWAN Coal-fired power plant’s coal transportation facilities KRW 634 Billion

• Ordering Client: Taiwan Power Company

• Hsinta KRW 26.4 Billion (Apr. 2006-Jul. 2009)

• Talin KRW 37 Billion (Nov. 2008-Oct. 2010)

Shang Hsing Steel HS Mill remodeling KRW 7.3 Billion

• Period: Dec. 2007-Jul. 2009

TIMOR-LESTE Bridge construction project KRW 6.1 Billion

• Ordering Client: Ministry of Infrastructure, Timor-Leste

• Period: Mar. 2011-Apr. 2012

CHILE Coal-fired power plant’s coal transportation facilities KRW 284 Billion

• Ordering Client: POSCO Engineering & Construction (AES)

• Angamos KRW 23.3 Billion (Aug. 2008-Apr. 2011)

• Campiche KRW 5.1 Billion (Aug. 2008-Oct. 2010)

CEO

Corporate Strategic Planning Group

Finance & Account Group

Business Innovation Group

Quality Innovation Group

Information Protection Group

Talent Creation Group

Human Resources Collaboration Group

Human Happiness & Satisfaction Group

Win-Win Growth Group

ISO 26000 Task Force Team

Steel Project Business Department

Transport Loading/Unloading Project Department

Raw Material Transfer System Project Department

Manufacturing Strategic Planning Department

Facility Manufacturing Department

Engineering Department

Engineering Innovation Team

Research & Development Center

Technology Creation Group

Corporate Audit Department

Corporate Strategy Division

Management Development Division

Design Technology Division

Machining & Manufacture Division Pohang Project Division GwangYang Project

Division Global Project Division

Pohang Business Department

Pohang Iron & Steelmaking Facility Project Department

Pohang Rolling Mill Project Department

Pohang Construction Project Department

Environment & Safety Group

POSCOSS Revamping Task Force Team

Mg Smelting Project Task Force Team

GwangYang HS Group

GwangYang Business Department

GwangYang Iron & Steelmaking Facility Project Department

GwangYang Rolling Mill Project Department

GwangYang Construction Manufacture Department

Granulated Blast Furnace Slag Powder Task Force Team

4 Hot Coil & Coke Oven Task Force Team

Power & Energy Business Department

Logistic & Chemical Business Department

Growth Industries Business Department

Green Energy Business Department

Airport Business Department

S-POWER Business Department

POSCO PLANTEC Malaysia K.L Branch

POSCO PLANTEC Taiwan Branch

Chile Project Task Force Team

POSCO PLANTEC Indonesia Office

Indonesia Project Task Force Team


STAKEHOLDER COMMUNICATION

POSCO PLANTEC is to listen to stakeholders carefully and reflect their feedback into business operations in accordance with ISO 26000

social responsibility integration processes. Our sustainability will be further enhanced through stronger day-to-day communication with

our internal stakeholders including employees and external stakeholders of business partners and local communities.

In-house Communication Activities

We are carrying out intensive activities to communicate with our

employees, one of the most important stakeholders to us. Lunch meetings

with the company CEO and staff lunch meetings in each department are

held around 3 times a week to provide a venue for open-minded dialogue

and discussions and to make the voice of our employees heard.

Junior Board and Challenge Board

Our “Junior Board” and “Challenge Board” were launched in July 2010.

These boards work to redefine communication channels between

CEO and employees and ensure continued communication with our

worksites to find diverse business ideas. In addition, they look for possible

improvement areas through benchmarking of companies in different

industry sectors, competitors and industry leaders in order to identify,

review and perform innovation and implementation tasks.

Talk & Talk and In-house Publications

Our enterprise portal has a separate Talk & Talk section where employees are

free to suggest any kind of ideas for company growth. Four kinds of letters-

Environment and Safety Keepers, Easy-to-Understand Financial Information,

Quality Letter, and Weekly Harmony News- are issued every week to

constantly inform our employees of the latest news about POSCO PLANTEC.

Dialogue with CEO

CEO messages are distributed to all employees in various meetings

including monthly business management meetings, executive meetings

and War Room meetings. Other diversified activities are going on as well

to ensure more active internal communication.

External Communication Activities

To communicate with external stakeholders, we are running the corporate

website and webzines through Twitter and blogs and engage in proactive

corporate promotional and marketing activities via POSCO Newspaper

and media outlets.

POSCO PLANTEC Website

The POSCO PLANTEC website (poscoplantec.co.kr) provides wide-

ranging services for customers and subscribers. The contract management

service section is to facilitate the self-service functionality with customer-

centered contract management services and the idea suggestion section

allows us to gather ideas from external stakeholders.

Our mobile website is slated to open in September 2011 to respond to the

drastic shift from the PC to the mobile web environment and to enhance

our engineering competitiveness with differentiated customer services.

Blog and Twitter-enabled Webzines

POSCO PLANTEC plans to launch corporate social network services from

September 2011 via blog (poscoplantecplaza.tistory.com) and Twitter

(twitter.com/poscoplantec) to communicate with younger generations.

These webzines will enable us to build a friendly corporate image by

establishing online relationships with young people and to benefit from

effective communication activities, promoting the company image in an

indirect and subtle manner and attracting potential customers.

Meetings with External Stakeholders

We define our partners as the most important external stakeholder

group and this is why we seek shared growth with them through regular

meetings that make their voices heard. In September 2010, POSCO

PLANTEC met with stakeholders once in Pohang and Gwangyang

respectively to gather their diverse opinions and build mutual consensus

on how to comply with fair trade principles and promote mutually

beneficial activities between large companies and SMEs (Tier 1-3

suppliers). We are determined to have more of these opportunities to

communicate with wide-ranging external stakeholders.

Business Areas

POSCO PLANTEC is creating and delivering values to customers in the areas of steel facilities, industrial facilities, logistics facilities, new green growth,

industrial machinery and construction.

Steel Facilities

Our steel facilities business constitutes the core of our high-end technology profile and also the pride we take as an industry

leader. Our steel facility plants provide the best-possible engineering services based on the capabilities we accumulated in

performing projects on POSCO’s Pohang and Gwangyang Steel Mills. We are working on more than 90 steel manufacturing

projects annually : Iron & Steel Making lines including Transport Loading/Unloading, MHS(Material Handling System),

Sintering, Blast Furnace, Steel manufacturing, Continuous Casting, Finex and etc. and Rolling lines including Hot Rolling,

Steel Plate milling, Wire rod milling, Billet milling , Cold Rolling, Electric Steel milling, Stainless steel milling and etc.

Industrial Facilities

Our industrial facility plants are recognized for their outstanding performance all over the world and serve as

trustworthy partners that enhance customer values with proven steel plant capabilities and continued engineering

technology development. Our top-notch technology capacity enables us to expand beyond the local Korean market

into larger overseas markets, taking part in projects around the world such as Malaysia’s Bakun Dam floodgate project,

Taiwan’s TPC CHS facilities project, steel mill construction projects in Vietnam and Indonesia and many others in Latin

America and the Middle East.

Logistics Facilities

The baggage handling system in Incheon International Airport surprised the whole world for its excellent performance

and this in turn shed a renewed spotlight on its manufacturer, POSCO PLANTEC. We successfully completed the Phase

1 & 2 Baggage Handling System projects at the airport, the world’s largest of its kind that opened a new horizon in

logistics systems which are often dubbed the main artery of modern industrial facilities. With our proven track records

of participating in more than 95% of the local Korean airport projects, we are expanding into overseas markets and

spearheading the global logistics as a trendsetter.

New Green Growth

We are engaged in eco-friendly business to create a world where people and the nature can live in harmony. While

seeking economic growth, we strive to minimize consumption of resources and environmental pollution through low-

carbon green growth initiatives. We bring about a cleaner and greener future with wide-ranging eco-friendly energy

business including photovoltaics and wind power.

Construction Business

We have worked on numerous projects to rationalize and improve the Pohang Steel Mill over the last 3 decades since

our foundation. With the acquisition of a general construction license, we are participating in POSCO’s overseas steel

mill construction projects in addition to large-scale power generation facility and plant projects.

Industrial Machinery

We are expanding our business horizon as a heavy industry company equipped with engineering and manufacturing

capabilities. We established the 66,000m2 machining and manufacturing shop in the No. 2 Industrial Complex at Pohang

New Port in order to manufacture green growth-related facilities, petrochemical facilities including storage tanks as

well as specialized steel-making and industrial facility engineering products. In addition, we plan to secure advanced

manufacturing capacities through sustained technology development to grow into a leading heavy industry company.


Industry Peer Analysis

We studied sustainability reports of 5 leading engineering companies in Korea and

overseas to analyze their contents by specific issues in ISO 26000’s 7 core subjects

and to identify major issues in the engineering industry.

CSR Performance Assessment

Our CSR compliance level was evaluated in accordance with the ISO 26000 diagnostic

tools developed under the Ministry of Knowledge and Economy in order to identify

relevant issues on those vulnerable areas that may require improvement.

Trend-Impact Analysis

We surveyed executives and department heads on major sustainability issues in terms of

trend, impact and internal capacity to select those issues where we impact stakeholders

or vice versa and to identify internal capacity issues in respective value chain areas.

Media Analysis

We looked into news articles that covered both positive and negative aspects of our

major sustainability management issues.

Result of Materiality Analysis and Reported Issues (On a scale of 1 to 5)

Stakeholder Group Interviewees

Shareholders POSCO, Jeon-hyeok Lee, Group Leader

Partners Jusung Mechatronics, Duk-chul Jung, CEO

Employees POSCO PLANTEC, Byung-rack Hwang, Labour Representative

Labour Union POSCO PLANTEC, Jong-goo Seo, Head of Labour Union

Interest Groups Korea Mech. Const. Contractors Association, Kuk-hwan Jung, Business Manager

NGOs Child Fund Korea, Bo-geum Jun, Team Manager

Government Ministry of Employment and Labour, Dae-seok Jeong, Labour Inspector

Ordering Clients POSCO, Eul-doe Ki, Team Leader

Stakeholder Identification

POSCO PLANTEC’s stakeholders were classified into 3 groups: first, they impact our

performance, second, they are impacted by our performance and third, we bear legal,

financial and operational responsibilities.

Stakeholder Engagement

Our stakeholders were prioritized according to the current level of economic, social

and environmental impact that they have on us and vice versa and the potential level

of impact in the future. We carried out in-depth interviews with experts representing

the top 8 stakeholder groups to identify additional potential issues.

In addition, we surveyed stakeholders of sustainability issues identified through the

analysis of internal/external environments and stakeholder interviews conducted in the

awareness of social responsibility step.

The feedback from 525 stakeholders in respective groups was considered in evaluating

their level of interest in identified issues and POSCO PLANTEC’s level of performance

evaluation. The result formed the basis of the materiality test in the following step.

MATERIALITY TEST PROCESS

POSCO PLANTEC has taken multi-layered steps to identify sustainability issues that are material to stakeholders and outline our

achievements on these material issues in this report.

Issue Identification Process

• Industry Peer Analysis

• Analysis of media materials

•Trend-Impact Analysis

• Stakeholder interviews

•Assessment of ISO 26000 compliance

Identification of Material Issues

(Table of Contents)Relevance Analysis

Significance Analysis (Survey of internal/external stakeholders)

Materiality Test

Core

Strategic

NGOs, Interest groups, Media, Knowledge providers, Non-regular workers, NPOs

Employees, Shareholders and Investors

Government, Related government agencies, Affiliates, Subsidiaries, Partners, Labour union, Corporate customers, Korean ordering clients, Overseas ordering clients, Local people in Pohang

Environmental

Internal Resources and Capacities Issues

1 Securing core technology of engineering and heavy industry 4.22

2 Human resources development 4.20

3 Construction and implementation 4.13

4 Product/service quality 4.09

5 Strategy planning and implementation 4.07

6 Infrastructure (facilities, information systems and structures) 4.03

7 Development of products and services 4.01

8 Promotion and sales operations 3.99

9 Establishment of strategic corporate social responsibility framework 3.98

Finalized Material Issues Reported

1 Expansion of emerging markets 4.27

2 Acceleration of technology development 4.27

3 Extension of product and service responsibilities 4.22

4 Protection of occupational health and safety (prevention of accidents) 4.21

5 Prevention of corruption 4.21

6 Diversified and demanding needs of customer companies 4.19

7 Increasing globalization and interconnectivity 4.17

8 Speedier communication (internet, smart phones) 4.17

9 Shared growth 4.17

10 Shared growth with partners 4.14

11 Customer information protection and security 4.13

12 Increasing environmental pollution and waste 4.13

13 Quality of conditions of work 4.13

14 Guarantee of fair employment and employment relationships 4.11

15 Social influences (recruitment, wage level and purchasing) 4.09

16 Growing significance of employee rights and roles 4.09

17 Employee training and capacity building 4.08

18 Customer health and safety 4.08

19 Increasing competition 4.07

20 Fair competition (unfair competition and monopoly) 4.06

21 Customer satisfaction activities and provision of product information 4.06

22 Legal compliance 4.06

23 Low-carbon green growth policies 4.06

24 Reduction of energy consumption and use of renewable energy 4.05

25 Prevention of environmental pollution 4.04

26 Consideration of stakeholder opinions(customers, shareholders and non-governmental interest groups) 4.02

27 Sustainable use of resources 4.01

28 Contributions through technical expertise, functionalities and application to local communities 4.01

29 Sustainable use of resources 3.97

30 Depletion of natural resources (fossil fuel) 3.97

31 Provision of job creation opportunities 3.97

▶ Core Stakeholder _ essential for the survival

▶ Strategic Stakeholder _ vital to the organization to address certain issues

▶ Environmental Stakeholder _ other than core, strategic stakeholders

. Awareness of Social ResponsibilityWe looked at our internal/external environments to identify material sustainability management issues that require our full considerations in the conduct of business.

Ⅰ

. Materiality TestThe materiality of the initial 98 sustainability issues was analyzed with relevance and significance analyses. The relevance analysis narrowed down these into

58 issues and the significance analysis based on stakeholder surveys further reduced them to 40 material issues.

These final 40 issues include 12 trend issues and 19 impact issues with scores over 3.97 and 9 internal capacity issues with scores over 3.98 on a scale of 1 to 5.

Ⅲ

. Stakeholder Identification and EngagementTo incorporate “stakeholder identification and engagement” emphasized by ISO 26000 in setting corporate strategies, we identified stakeholders according

to ISO 26000 criteria and found material issues through interviews and surveys.

Ⅱ

4.5

●Trend ●ImpactSignificance to POSCO PLANTEC

Significance to Stakeholders3.83.7

3.6

3.7

3.8

3.9

4.0

4.1

4.2

4.3

4.4

3.9 4.0 4.1 4.2 4.3 4.4 4.5

3129

27

2824

26

25

5

4

21

1814

1113

17

1912

7

16

1

2

8

23

9

6

3

20

30

10

22

12 13POSCO PLANTEC SUSTAINABILITY REPORT 2010 SUSTAINABILITY MANAGEMENT SYSTEM

Sustainability Management Framework / Vision 2020 14

Corporate Governance 16

Fair Trade 17

Ethics Management 18

Our Sustainability Management SystemPOSCO PLANTEC is making steady progress financially. We are becoming more stringent in

managing our social responsibility and environmental soundness than before.

We believe that such endeavors will guide us to win the trust of stakeholders and grow more

competitive as a sustainable company.

• Economic Profitability:

Boosting economic profitability through profitable operations, creation of added values, increased productivity,

creation of employment, fair transactions and fair competition

• Social Responsibility:

Meeting social responsibilities in the fields of human rights, labour, product liabilities, and social contributions

• Environmental Soundness:

Maintaining environmental soundness through reductions of green house gas emissions,

pollutants and hazardous chemicals, preservation of resources and eco-friendly production

Incheon International Airport's Baggage Handling System Delivered by POSCO PLANTEC


The innovation to build a corporate culture of passion and execution based on trust and communication serves as an engine and the creation to secure world’s highest level of engineering competitiveness through the enhancement of sustainability capacity serves as a concept to realize our Vision 2020 where we strive to deliver satisfaction and happiness to internal/external customers and to enable them to make their dreams come true.

Sustainability Management Strategy Framework

We are managing the following key performance indicators in each core value category to achieve our Vision 2020.

2010 Achievements and 2011 Targets

Sustainability Management System

POSCO PLANTEC SUSTAINABILITY REPORT 2010

Action Strategies

Core Values

Vision

Growth of People

▶ Fostering globally competent

talents

▶ Seeking shared growth of both

company and employees

Evolution of Business

▶ Expanding the scope of

engineering business

▶ Focusing on new materials,

eco-friendly business and energy

business

▶Expanding infrastructure of

manufacturing shops in Korea and

abroad

Expansion of Scope

▶ Working with POSCO group family

companies in overseas business

▶ Expanding overseas business into

Southeast Asia, Latin America and

other regions of the world

Innovation of Dynamics

▶ Building the global management

system

▶ Carrying out innovation activities

to improve profitability

▶ Globalizing the corporate culture

Happiness (Target)

Sustainable company

where dreams come true

Recognizing social responsibility / Organizational governance / Human rights / Labour practices / The environment /

Fair operating practices / Consumer issues / Community involvement and development

• Heaven-like workplace for employees

• Company respected and admired by

customers

• Socially responsible company that gives

back to society

World’s highest level of engineering

competitiveness

• Quality management

• Safety management

• Environment management

• Talent management

Corporate culture

of passion and execution

• Generating outcomes through the use of VP

and problem-solving techniques(6 Sigma/TRIZ)

• Boosting productivity through Smart Work

• Building labour-management culture based

on communication and trust

Creation (Concept) Innovation (Engine)

Catch Phrases

ISO 26000

Reference

Strategic Tasks

GREAT PARTNER IN THE PLANT WORLD (Achieving KRW 7 Trillion in Orders and KRW 3.5 Trillion in Sales by 2020)

POSCO PLANTEC is in the initial stage to build its own sustainability management systems and aims to make its company-wide operations sustainable in accordance with ISO 26000 for social responsibility guidelines. The ISO 26000 Task Force Team was newly created in 2010 to monitor our compliance with ISO 26000 processes and requirements in 7 core subjects and to enhance our sustainability performance.

Organizational Structure for Sustainability Management

ISO 26000 Core Subjects Units in Charge

Social Responsibility Integration Processes

ISO26000 Task Force Team

Organizational Governance Corporate Strategic Planning Group

Human Rights Talent Creation Group

Labour Practices Human Resources Collaboration Group

The Environment Environment & Safety Group

Fair Operating PracticesCorporate Audit Department, Win-Win Growth Group

Consumer IssuesQuality Innovation Group, Sales and execution departments

Community Involvement and Development

Human Happiness & Satisfaction Group

Organizational Structure for CSR Operations

CEO

Board of Directors

Management Development Division

ISO26000 Task Force Team

Talent Creation Group

HRC Group

HS Group

Win-Win Growth Group

Corporate Strategy Division

Corporate Strategic Planning Group

Quality Innovation Group

Environment & Safety Group

Sales and execution departments

Corporate Audit Department

▒ Unit _ PointsHappiness (Customer Satisfaction)

82

88

▒ Unit _ Points

▒ Unit _ Points

Innovation (Management Innovation Indicator)

Innovation (Facility Investment Innovation Indicator)

4.0

62

4.3

72

▒ Unit _ Cases

▒ Unit _ KRW

Creation (Ownership of Intellectual Property Rights)

Creation (Orders/Sales per Employee)

2

1.16 /730

2010 Achievements

2010 Achievements

2010 Achievements

2010 Achievements

2010 Achievements

20

1.42 /910

2011 Targets

2011 Targets

2011 Targets

2011 Targets

2011 Targets

▒ Unit _ PointsHappiness (Happiness Index)

70

74

2010 Achievements

2011 Targets

GREAT PARTNER IN THE PLANT WORLD (Achieving KRW 7 Trillion in Orders and KRW 3.5 Trillion in Sales by 2020)

POSCO PLANTEC aims to become an engineering company with world-level design and construction capabilities. To achieve our Vision 2020 and to grow into a multinational company admired by customers, we manage not only economic achievements but also sustainability achievements that concern overall social and environmental aspects.

Vision 2020Sustainability Management FrameworkPOSCO PLANTEC set its own vision of Great Partner in Plant World and Vision 2020 to post KRW 7 Trillion in orders and KRW 3.5 Trillion in sales by 2020. We are moving towards these goals through the company-wide managment strategy whose framework is being integrated with our sustainability management strategies that address the entire economic, social and environmental performance. We are to furthe revolve this framework in the upcoming years.

POSCO PLANTEC’s Sustainability Management Strategic Framework

Happiness

Creation Innovation


POSCO PLANTEC’s board of directors is made up of executives in charge of respective business divisions. The company CEO recommends director candidates through the review of their expertise and qualifications and the final appointment should be approved by POSCO who wholly owns POSCO PLANTEC.

The BOD compensation is determined by POSCO PLANTEC CEO and POSCO: the company CEO evaluates the performance of individual BOD members and POSCO, the sole shareholder, makes assessments of business projects twice a year in the first and second half respectively and the results are reflected in setting BOD compensation levels. Our BOD members are paid up to 100% of their annual salary in the form of performance bonus.

Director Appointment and Compensation

POSCO PLANTEC plans to create a CSR Committee in 2011 as part of the initial stage endeavors to introduce sustainability management. The committee, once established, will be in charge of examining CSR strategies and action plans to meet company goals in accordance with 7 core subjects of ISO 26000.

BOD’s Management of CSR Performance

Our BOD runs Challenge Board and Junior Board to ensure our employees make their voices heard in business operations. Challenge Board consists of deputy general managers and section managers to gather their opinions. It aims to present constructive suggestions for the growth of the company such as Vision 2020 strategies and to build detailed corporate development plans.

Junior Board includes employees in the assistant manager position and under and generates ideas to stimulate company growth. Its operation makes sure that diverse communication channels are set between top management and employees to build a corporate culture of trust and communication. These suggestions and ideas are reported to top management through monthly CEO briefings and quarterly workshops.

BOD’s Gathering of Employee Opinions

POSCO PLANTEC installs facilities and designs and manufactures steel facilities for steelworks of POSCO, its sole shareholder, and has no equity investments made in its shareholder.

Shareholder Relationship and Equity

POSCO PLANTEC’s board of directors (BOD) is made up of 10 members: 5 of them are registered and the other 5 are unregistered directors. The company CEO serves as the chairman of the BOD and presides over BOD meetings. The BOD meets once a month regularly and convenes ad-hoc meetings to address urgent matters, setting corporate strategies and supervising enterprise-wide operations. We have no standing committees established given the size of the company and lack of needs for such committees.

BOD Structure and Committees

All of POSCO PLANTEC shares are owned by POSCO and our BOD members have no business relations with or interests in the company, which fundamentally prevents any conflict of interest from taking place.

Process to Prevent Conflict of Interest

Apr. 26, 2011 ▶ Fair trade action leaders appointed (28 leaders)

Dec. 2009 ▶ Fair trade compliance program (CP) rated (A-rated) CP-related section created at the corporate website

May 2008 ▶ Fair Trade Compliance Council set up with members from heads of fair trade-related departments

Jul. 9, 2007 ▶ Fair trade compliance manuals created and distributed

Apr. 13, 2007 ▶ Standing auditor appointed as a compliance manager

BOD Members

Registration Standing / Non-standing Name Position Responsibility Business Relations with the Company

Registered

Standing Chang-hwan Cho President CEO None

Standing Do-gun Kim Executive Vice President Corporate Strategy Division None

Standing Myung-ho Bae Senior Vice President Machining & Manufacture Division None

Non-Standing Chung-myong Cho Non-standing Director Non-standing Director None

Standing Dong-hee Han Standing Auditor Standing Auditor None

Non-registered

Standing Byung-goon Cho Executive Vice President Global Project Division None

Standing Jin-hwa Kim Executive Vice President Management Development Division None

Standing Geun-ho Park Senior Vice President GwangYang Project Division None

Standing Dae-beum Park Senior Vice President Pohang Project Division None

Standing Hoi-yong Kim Senior Vice President Design Technology Division None

Corporate GovernanceAs a subsidiary of POSCO, POSCO PLANTEC is wholly owned by POSCO as of the end of 2010.

All POSCO PLANTEC employees sign a written pledge to abide by fair trade regulations at the beginning of a new year. In so doing, we declare externally that we have both the mind-set to comply with fair trade principles and the willingness to do so.

The pledge says that our employees shall work in accordance with monopoly and fair trade regulations and it also stipulates that we should be in full compliance with the do’s and dont's as a contractor as part of the subcontract transaction regulations.

Written Pledge for Fair Trade Compliance

We provide “visiting courses” on fair trade every year. These courses are given to all our employees and 12 offices in respective business sites took these visiting courses to raise their awareness of fair trade regarding subcontracts. These courses primarily deal with the do’s and don’ts we should be aware of as a contractor and our employees are educated on the fair trade act through relevant materials uploaded online.

To prevent legal violations that may take place due to the revised fair trade act and enhance the awareness of legal compliance among employees, check lists are distributed and self-examinations are made half-yearly.

Planning and Offering Fair Trade Training

POSCO PLANTEC, as an engineering company, does not provide political support or engage in lobbying activities. Donations over KRW 10 Million to any organizations are allowed only with BOD’s approval. There were no political fund donations made in 2010 except for corporate philanthropic activities and we maintain our political neutrality. With the possible expansion of business in the upcoming years, we may participate in public policy making process with a view to developing the engineering industry where we operate.

Responsible Participation in Politics

POSCO PLANTEC’s fair trade compliance program (CP) was launched on April 12, 2007 and relevant business units were created and guideline booklets were distributed to help establish its systemized operation framework. The program was also verified through external evaluations.

Introduction of Fair Trade Compliance Program and Establishment Of Operation Framework

The Fair Trade Commission of Korea announced on June 23, 2010 the result of its evaluations on companies that signed to participate in the “Triangle Cooperation Program” to promote mutual cooperation and fair trade between December 2008 and March 2009. POSCO PLANTEC was rated “excellent”, which means its score points were above 90. According to the incentive system

available for “excellent” rated companies under the program, we are exempted from official and written inspections for one year. We were also designated as a company with outstanding subcontracting practices and awarded with the Fair Trade Commission Chairman’s citation.

『Excellent』 Performance in Triangle Cooperation Program

Caring and tolerant attitudes are a key enabler for ethics management that ensures joint growth and unity among POSCO family company emloyees and wide-ranging stakeholders. On top of this, compliance with fair trade principles is one of the best ways to build ethics management of shared growth and harmony into our business operations. POSCO PLANTEC is fully committed to fair trade based on mutual trust.

Fair Trade


POSCO PLANTEC Code of Ethics was established in order to cope with the expansion of overseas business, meet our corporate social responsibilities and help our employees set their own proper values. It is composed of code of ethics, rules of conduct and practical guidelines.

POSCO PLANTEC is engaged in a wide spectrum of activities in compliance with business ethics. We strive to enhance our corporate values with sustained management innovation and growth capacities and to establish an ethical corporate culture. In so doing, we aim to become a trustworthy business partner to customers, an attractive investment destination to shareholders and a most sought-after company to employees, promoting shared growth and development with all of our stakeholders.

Establishment and Declaration of POSCO PLANTEC Code of Ethics

All POSCO PLANTEC employees have been signing a written pledge to comply with the company’s code of ethics at the beginning of a new year since January 2005. The pledge says our employees shall abide by the code of ethics, restrain from any favors for a job promotion, comply with Korean and overseas anti-corruption regulations as well as the Fair Tade Act.

Written Pledge to Comply with POSCO PLANTEC Code of Ethics

To achieve Vision 2020 shared by all POSCO Family companies and to grow into a multinational engineering company, we are working to elevate our ethics management to the level of advanced global players. The “compliance guidelines on overseas anti-corruption regulations” have been applied to POSCO family companies since 2011 and all of our employees in Korean local offices and overseas business sites are mandated to comply with them as an ethics standard for global business.

Compliance Guidelines on Overseas Anti-corruption Regulations

POSCO PLANTEC offers new recruits and all the other employees regular ethics training twice a year including sexual harassment prevention courses. We provide in-house courses or invite outside lecturers to address such issues as understanding & practice of business ethics, code of ethics & practice systems and case studies of unethical practices.

All of our employees are obligated to take 5 online courses including in-house sexual harassment prevention course and global business ethics course (training expenditure KRW 8,800 per employee per course).

Ethics Education

POSCO PLANTEC supports UN’s Universal Declaration of Human Rights and ILO regulations. We provide our employees with a venue for personal development through the respect for their individual creativity and the provision of opportunities for fair competition. Our code of ethics clearly stipulates that our employees are not discriminated against on the grounds of education, regional background, gender, age, religion or any other reasons and we are fully committed to establishing a future-oriented corporate culture based on mutual trust and understanding.

POSCO PLANTEC Code of Ethics also states that we comply with labour regulations in Korea and abroad. Our conduct of business does not entail child labour given the inherent characteristics of the plant engineering industry and forced labour as well since our business partners fully abide by the Korean Labour Standards Act.

Protection of Human Rights

POSCO PLANTEC’s ethics management reporting center handles reports on violations of business ethics in order to eliminate any types of corruptive practices that may take place in the conduct of business. Our compensation and indemnification system on reports of unethical practices was set up in September 20, 2004 to prevent unethical behaviors regarding our employees and stakeholders and to encourage violators to report their wrongdoings voluntarily. The total number of reports submitted by 2010 stands at 13. These reports concern fairness of bidding process, procurement-related corruptions and overdue payments at business partners and there have been no reports on sexual harassment and human rights violations.

The identity of reporters is thoroughly protected and institutional devices such as investigations by the audit department and operations of the HR Committee ensure that all types of reprisal are strictly prohibited. Reporters are entitled to compensations in accordance with the corporate compensation policy on reports of unethical practices and the amount was increased up to KRW 1 Billion in 2011.

Ethics Management Reporting Center

Our employees have the business ethics self-check list attached to their company ID cards and diaries, which constantly reminds them of these ethical norms and builds them into their daily operations. .

Business Ethics Self-check List

POSCO CEO’s New Year Message on the Code of Ethics Pledge

We operate the Unethical Practice Reporting Committee to deal with corruptions. A standing auditor serves as the committee chairman and is responsible for investigating and reviewing reported cases and referring them to the HR Committee. In case of voluntary reports, the committee decides whether to grant indemnification. The reporters are briefed on case handling procedures and those cases uncovered in relation with business partners are addressed according to the restraint of trade clauses under the general contract provisions.

Corruption Investigation

▶ Website : http://ethics.poscoplantec.co.kr

▶ Phone : +82-(0)54-279-7714

▶ Fax : +82-(0)54-279-9550

Ethics Management Reporting Center under the Corporate Audit Department

Code of Ethics Compliance Systems

▶ Voluntary business ethics compliance program(Jun. 18, 2006~)

- Identifying ethical risks in respective departments, selecting ethics

improvement tasks, preventing unethical practices through action plans and

improvement activities

▶ Notifying suppliers of POSCO PLANTEC Code of Ethics and establishing

special provisions to ensure compliance with the code of ethics

(Aug. 25, 2004)

▶ Business ethics action leader program (Jun. 1, 2004 ~)

- 28 action leaders in respective departments in 2011

▶ Business ethics compliance systems

- Operates holiday and promotion gift return center (Aug. 28, 2003)

- Ethics management cyber reporting center Established (Aug. 20, 2004)

- Reward and indemnification systems on reports of unethical practices

(Sep. 20, 2004)

- Settlement system for risk-free ethical practices (Jun. 1, 2011)

- Compliance guidelines on overseas anti-corruption regulations (Jun. 1, 2011)

Reports Submitted to the Cyber Reporting Center per Annum (Unit: No. of cases)

13

Contract employee’s pay

1

1 1

1

2

61

Subcontract, Order-winning Subcontract, Industrial accidentSubcontract, Delivery

Subcontract, Ordering Subcontract, wage

Recruitment

When we face ethical dilemmas, we need to remind ourselves of

the first question on the business ethics self-check list, which is “If

everybody else sees what I do now, do I still have a clear conscious

about it?” and make sure that we have nothing to feel guilty about

our deeds.

If we keep making the right ethical decisions in accordance with the

basic principles even on trivial things that happen in our daily lives,

that will enable our ethical management to take its firm root only

naturally, allowing us to do the right things and do it right.

We also need to facilitate Visual Management (VM) continuously to

disclose and share ethical problems in order to find the fundamental

solutions. As the saying ‘A stitch in time saves nine’ goes, even small

problems deserve our efforts to examine and prevent them. I hope

that our employees will eliminate any types of unethical behaviors and

unreasonable business practices with VM.

Ethics ManagementPOSCO PLANTEC str ives to become a company respected and admired by stakeholders with its 'Right-Way Management' to stay faithful to the basics and strictly observe the principles. Ethics management forms the fundamental management philosophy of the POSCO family group and we are determined to eliminate corruption with stronger ethics management. We will ensure to win the trust and respect of our stakeholders through ethics management.

20 21POSCO PLANTEC SUSTAINABILITY REPORT 2010 OPEN MANAGEMENT

Shared Growth 22

Creation of Customer Values 24

Employees 26

Labour 28

Health and Safety 30

Community Involvement and Development 32

Our Open ManagementPOSCO PLANTEC always strives to become a good listener to stakeholders and to take the lead in delivering

shared growth and customer values through mutually-beneficial partnership, cooperation and open-mindedness.

• Mutually-beneficial Partnership:

We always listen to our stakeholders. We aim to elevate each and every business activity to the level that deserves stakeholder’s

trust in order to become an admired company.

• Cooperation:

We grow more competitive through cooperative relationships with suppliers, customers and outsource companies and achieve the

greatest-possible synergistic effects through the acceleration of the group management system.

• Open-mindedness:

We learn new knowledge with flexible and open-minded attitudes and create a corporate culture that makes our dreams come true

and touches the heart of stakeholders with lively communication among different hierarchical levels, organizations and generations.

Pohang Steel Mill's Pig Iron Facilities Delivered by POSCO PLANTEC


POSCO PLANTEC is building a supply chain where we promote mutually-beneficial partnership with outsource partners to grow more competitive.

Ways to Promote Shared Growth

POSCO PLANTEC is building a supply chain for shared growth based on trust and communication. We promote mutually-beneficial cooperation and shared growth in the entire corporate ecosystem to ensure long-term sustainable competitiveness in the global market.

We are also fully aware that the healthy corporate ecosystem is the fundamental source of our competitiveness and this is why our shared growth initiatives make sure that the supply chain becomes a critical part of the mutually-beneficial partnership.

As a result, we were “A(excellent)” rated for our accomplishments on the triangle cooperation program by the Fair Trade Commission in 2010. We are proactively supporting our partners in enhancing their product quality and price competitiveness through continued shared growth initiatives.

Overview of Shared Growth Initiatives

We provide practical and customized support in pursuing mutually-beneficial cooperation to achieve shared growth. The motto for POSCO family companies’ shared growth initiatives is 3Ts of Trust, Together and Tomorrow. It means that POSCO family companies are to move towards ‘Tomorrow’ to grow ‘Together’ with partners based on mutual ‘Trust’. Under this motto, we have made progress on 16 items in 7 sectors and are working on our own cooperation model for mutually-beneficial relationship, shared growth and technology assistance.

Support for Partners

Operating fair and transparent transaction systems

Boosting innovation

and technology

capabilities of tier 1-3 partnersSustained and sincere cooperation

Building a culture of trust based on

communication and caring attitudes

Achieving Shared Growth through Practical and Customized Mutually-beneficial Cooperation

Items 2010 Achievements

Technology Development

• Customized technology assistance using Techno Partnership System - Creating synergistic effects through the increase of joint order-taking consortium 15 cases

• Operating a patent consultation center and supporting the use of patents 25 cases

Education and Training

• SME job training consortium 39 partners

• Technology assistance for SMEs (Distributing technology standards manuals) 572 partners

• Customized business management consulting services for SMEs offered on the site (QSS, 5S) 26 partners

• Running shared growth support teams for SMEs (Nov. 2010-) 21 groups

Procurement Cooperation

• Facilitating Benefit Sharing 5 cases

• Support system for top-performing suppliers (Increasing the number of these top performers) 6 suppliers

Council Activities

• Mutually-beneficial Cooperation Council (POSCO, invested companies, SME representatives) 2 meetings/year

Payment Conditions

• Over KRW 30 Million: 50% cash and 50% purchasing card - Holidays(New Year/Thanksgiving): Making early payments (7 days in advance)

309 partners, KRW 22.6 Billion

Financing

• Support for SME Win-Win Funds and others (direct, mixed, indirect) On-going

Stronger Partnership

• Continued operation of the grievance resolution center Year-round

• Cyber Ombudsman Bulletin (Identifying problems/complaints and VOC) established (e-pro)

• Sector-specific exchanges of human resources 2 cases

• Management Doctor System, 2nd session in 2010 (Attended by one partner) 1 case

• Inviting outsource partners for meetings 5 meetings (3 in the first,

2 in the second half)

Shared growth/fair trade initiatives constitute the most important management philosophy for us to promote sustainability as a company and we are moving towards shared growth in a sincere and continuous manner.

The Fair Trade Commission of Korea created the “Triangle Cooperation Program (TCP)”, a triangular cooperation program among large companies, SMEs and the government, to promote mutually-beneficial cooperation and fair trade between large companies and their SME suppliers. Those companies that participate in this program are evaluated for their compliance with this program one year later and given incentives including exemption from official inspections according to their compliance level.

As part of our efforts to implement this program, we invited 100 CEOs of our SME suppliers in September 2010 and June 2011 to describe our endeavors on integrated purchasing and master plans on mutually-beneficial cooperation with SMEs.

Conclusion of Shared Growth/Fair Trade Agreements

Our local purchasing in Pohang where our headquarters is located and other regions of Korea far exceeds that of overseas sites. We plan to strengthen our global supply chain and increase local purchasing in our overseas markets in due consideration of the local community where we operate.

Purchasing Data in Korea and Abroad

In an effort to achieve shared growth, we surveyed our partners, the most important stakeholder in moving toward this goal, of their satisfaction level in 2010. The survey was conducted twice a year in the first and second half respectively. As part of our customized shared growth initiatives, we listen to their honest opinions and provide solutions to their problems, building mutually-beneficial partnership.

The survey looked at projects, design, quality, ethics, contracts, shared growth and VOC. The first half survey in 2011 revealed that satisfaction level of our partners with less than 3 years of business relationship was low and overall satisfaction levels in the entire survey items were slightly lower than the 2010 survey, which means we need to work harder in various ways to deliver higher satisfaction to our outsource partners.

Partner Satisfaction Survey

Our priority in promoting shared growth in 2010 was to carry out mutually-beneficial and customized activities. We secured communication channels to gather candid VOC of partners and focused on improving purchasing systems and supporting our partners in enhancing their technology and price competitiveness.

Our 2011 goal is to offer more substantial and SME-centered support. We are to concentrate on incentive offering for participating and outstanding SMEs in our shared growth initiatives rather than simply increasing the number support cases. We will also come up with ways to deal with lack of motivation or difficulties in selecting support items, which are attributable to short-term contracts and project-based business.

Future Action Plans

Green purchasing which aims to mitigate climate change and environmental degradation through the saving and efficient use of energy and resources is a prerequisite to ensure low carbon green growth, a new engine of economic growth. The general public in society are increasingly aware that companies, as a producer of green products and a healthy consumer, should play a central role in making low carbon green growth society a reality through green management. In order to respond to these emerging needs in society and to promote our image as a green company with our participation in Korean government’s low carbon green growth policy, we are taking the lead in purchasing, producing and distributing green products and in supporting these eco-friendly products to increase their competitiveness, spreading low carbon green production and a culture of green consumers.

Eco-friendly Product Purchasing Policy

▒ Unit _ Score pointsResults of Partner Satisfaction Survey (On a scale of 1 to 5)

4.32Dec. 2010

4.13Jun. 2011

4.302011 Target

▒ Unit _ KRW 1 MillionGreen Purchasing

14,500

18,000

15,959

11,385 (First half)

Open ManagementPOSCO PLANTEC SUSTAINABILITY REPORT 2010

▒ Unit _ KRW 1 Billion

4,0632010

2,838First half of 2011

KRW 341 Billion in Korea 65.3 Billion abroad

KRW 68.2 Billion abroadKRW 215.6 Billion in Korea

Shared GrowthPOSCO PLANTEC recognizes shared growth as a common social responsibility that all POSCO family companies bear together and is working hard toward this goal.

We are fully aware that shared growth is the most critical value we need to pursue to become a sustainable company and ensure joint growth with SME partners based on mutual trust in improving our competitiveness.

2010 Achievements

2011 Achievements

2010 Targets

2011 Targets

24 25 OPEN MANAGEMENT

POSCO PLANTEC is fully aware of the importance of quality management and all our employees took part in the declaration of the quality management charter on December 14, 2010.

Our quality management strategy starts with the enhanced quality-centered mindset of employees in order to build quality management into the fundamental philosophy of every business activity. As part of the declaration ceremony, all employees were given quality management badges to wear to increase their awareness of quality management. Quality Letters are also sent to all employees every month to help them understand various aspects of quality management.

We also make sure that our company-wide work processes are in conformity with global standards and adopted in every business activity. Our conduct of business will observe global quality manuals and quality standards including JIS and BSI and we also plan to secure various international quality certificates in response to corporate growth strategies.

Announcement of the Quality Charter

POSCO accounts for a whopping 54% of POSCO PLANTEC’s sales as of 2010. This is why we conduct a separate customer satisfaction survey of POSCO within 1 month of project completion if the project size is over KRW 500 Million. We also beefed up on-site safety patrol activities to improve safety as facility safety is our top priority given the inherent characteristics of the industry where we operate.

Quality and Safety

POSCO PLANTEC came up with detailed plans to tighten personal information protection in accordance with the personal information protection act that went into effect on September 30, 2011. Previously, our customer information protection was limited to customer information only but the revised law states that employee information should properly managed and protected and that companies are mandated to give notice on the purpose of using not only electronic materials but also hand-written documents and CCTV materials. We set up highly strict internal regulations on document printing and disposal of information and confidential business data such as project design layout are managed under tightened security from their creation to disposal. In addition, all our employees take e-learning courses on protection of trade secrets and information to build a stronger awareness of information security.

POSCO PLANTEC is in full compliance with ISO 27001, the international standards on information security. BG of the U.K. and POSCO jointly measure our compliance with international standards on information security and review relevant management issues. Our compliance score was 61 on a scale of 1 to 100 in 2010 and we aim to increase this to 76 in 2011.

Customer Information Protection and Security

• Monthly quality meetings and quality letters to spread and share the quality-centered mindset across the board

• Innovation activities (3R5S/QSS/VP), expertise sharing, VOC gathering and feedback offering in 21 selected companies

• Large-scale tasks to remove waste and increase work efficiency

• Machining and manufacturing shop in New Pohang Port working to obtain the ASME stamp

• PMO unit to improve the facility investment innovation index

• Internal surveys to increase the customer satisfaction index (CSI)

• Company-wide examination into requirements of industrial standards and 821 international certificates including ISO and AS certificates obtained

• Quality personal score card (PSC) to enhance individual employees’ quality of work

Achievements in the First Half of 2011

Achievements in Major KPIs

KPI First Half of 2011 2011 Target

Improved Quality of

Work 73.5 70

Mutually-beneficial

Support Index - 70

We identify customer responses, complaints and demands for improvement regarding products and services that we offer through customer satisfaction surveys. Such surveys are conducted every year in accordance with customer satisfaction survey procedures and they entail various aspects of customer satisfaction such as satisfaction of facility investment innovation and satisfaction of construction performance evaluations. In particular, our 2010 surveys of 166 Korean client companies revealed that their satisfaction level was 84.3 score points in the first half and 86.4 score points in the second half.

Customer Satisfaction Survey

POSCO PLANTEC is analyzing major factors that lead to customer unsatisfaction based on its 2010 surveys and is making progress on those factors. To help our employees better understand customer satisfaction, we invite customer satisfaction experts for training and provide all our employees with e-learning and u-learning courses that encourage them to think from the customer’s perspectives.

Training for Increased Customer Satisfaction

POSCO PLANTEC takes on the responsibility for any defects from the moment of completion of facility or construction projects. Regular defect inspections are conducted more than twice a year during the warranty period and if any defect is found, its cause and actions taken are reported to the customer to increase customer satisfaction. International accounting standards stipulate that defect repair expenses need to be calculated based on reasonable and objective criteria and we established operating procedures to follow on project defect repair to protect customers’ asset and win their trust.

Project Maintenance & Management and Defect Repair

▒ Unit _ KRW 1 MillionData on Defect Repair

2008 856

2009 894

2010 481

POSCO PLANTEC’s customer satisfaction training intends to not only satisfy employees as internal customers but also maintain partnership with customers for shared growth and pursue sustainable development as a partner committed towards mutual growth.

As we believe that quality partnership with outsource partners comes from systemized relationship management and continuous communication from the initial stage of relationship building to established long-term partnership, we are working on plans to upgrade our relationship with outsource partners. Continued improvements will be made through the gathering of customer opinions on such business operations as increasing delivery unit prices to realistic levels and signing long-term stable contracts.

Customer Satisfaction Based on Partnership

▒ Unit _ %2010 Customer Satisfaction Survey Results

85.2First Half 81.3

84.3

87.1Second Half 84.5

86.4

▒ Business Operations ▒ Company-wide Support for Partners ▒ Overall Satisfaction


▒ Unit _ Score pointsCustomer Satisfaction Index

2010 62

First Half of 2011 74.6

2011 Target 80

Creation of Customer Values POSCO PLANTEC’s quality management and customer satisfaction programs aim to deliver the level of product quality unmatched by any other companies in the world and thus truly touches the heart of customers based on the creation of customer values, observance of fundamental principles and trust & communication.

We also enhance customer values further through customer information security and fair marketing.

POSCO PLANEC believes that quality is the most important promise we should keep to our customers to realize Vision 2020 and to grow into a professional multinational engineering company. Quality is the fundamental prerequisite where no compromise is allowed. To ensure that the company name POSCO PLANTEC guarantees the highest possible quality, we are standardizing our work processes and taking company-wide initiatives for quality management.

In particular, the Quality Innovation Group was established to be in charge of quality management strategies on December 1, 2010 and the group set up mid/long-term plans on quality management in February 2011. It aims to develop the customer satisfaction index for service or product evaluations and customer satisfaction management systems in order to make our management activities more customer-centered.

Quality Management


We have 626 employees as of June 30, 2011. When it comes to overseas offices, there are 3 employees working in Malaysia, 1 in Taiwan, 1 in Italy and 1 in Indonesia as of June 2011.

Employee Data

▒ Unit _ No. of personsNo. of employees

609 626

2010

598 598

11 11

Jun. 2011

▒ Executives ▒ Working-level Employees

▒ Unit _ No. of persons2010 Employment Type

539

Regular Employees

524

15

▒ Female ▒ Female▒ Male ▒ Male

537

52116

Regular Employees

▒ Unit _ No. of personsJun. 2011 Employment Type

89

7811

Annual Salary-paid Contract

7

70

Annual Salary-paid Contract

63

▒ Unit _ No. of personsRegions

609 626

2010

104

422

72

Jun. 2011

▒ Pohang ▒ Gwangyang ▒ Seoul ▒ Overseas

11

113

414931

2010 Jun. 2011

Recruitment 78 27

Retirement (No. of persons) 28 (including 17 whose contract terminated) 10

Retirement (%) 4.6% 1.6%

Position-specific assessments are made with stringent criteria according to performance (MBO evaluations) and capacity (capacity evaluations) and the results are used for general HR purposes including promotion and wage. Such outcomes are reflected more in evaluating those in higher positions.

Assessment System and Its Application

POSCO PLANTEC provides a variety of welfare benefits to enhance satisfaction and convenience of employees. Our employees are not discriminated against in receiving these benefits regardless of their employment type and gender. We run the in-house welfare funds and provide support in wide-ranging areas such as meals, resort facilities, gifts for wedding anniversaries and birthdays, medical check-ups and clothing expenses. In particular, the in-house welfare funds which were established in 1993 with a portion of company profits are spent on ensuring an adequate level of welfare benefits to our employees and help them lead a healthy and happy life. The funds stood at KRW 11.484 Billion in value as of May 31, 2010.

Welfare Benefit System

Operation of Welfare Benefit Systems

Category

Loan Housing purchase or rent, Stability of household livelihood

Support

Scholarship for employees’ children, Granting welfare cardsEmployee family events, Medical expenses, Compensation for facilities not related with work, Physical therapy expenses, Holiday gifts, Medical check-ups for employees’ spouse

Staff Level System

Our promotion system is classified into position promotion and title promotion and based on individual employees’ capacity and performance. Basic promotion criteria are career track records, work performance appraisal, training records and language abilities. Those rated A and above on these basic qualification criteria are eligible for early promotions if their work experience is over 4 years. Those promoted to G2 and higher positions are chosen based on the scores of selection criteria and promotions to G3 are determined by the score system where those with high scores of selection criteria come first in line of promotion.

Promotion System

Category Position Promotion

Position career

G1 G2 G3 G4

5 years 5 years 5 years -

Selection Criteria(score points)

Work Performance Appraisal

Recommendation Records

Language Abilities

Total Note

60 30 10 100 10- +-10

Basic Qualification Criteria

Criteria Items

Position career, Work performance appraisal, Training records, Language abilities

* The number of title promotions is 3 times that of position promotions

Our staff level system is designed to promote competitiveness and fairness with separate definitions of position and title and ensure that those with outstanding organizational management capabilities are given opportunities to serve as a leader. Position promotions are designed to give individual employees substantial motivation and title promotions require employees to serve over a specific period of time and meet predetermined qualifications.

Staff Level System


G1

G3

G4

Assistant to Director

Department Manager

Assistant Manager

Staff Engineer

Deputy General Manager

Section Manager


Section Manager



Department Manager


Department Manager

G2

Team Member Team Leader Group Leader

Our wage system ensures wage flexibility through simplified pay bands based on a job duty and performance-oriented annual salary scheme (differentiated payments by positions in accordance with performance evaluations). A widely-adopted practice among Korean engineering companies is to pay according to evaluation results and to raise the differential allowances in accordance with the position hierarchy as higher job positions require more sophisticated capacities.

Wage System

Wage System

Fixed Pay

• Basic Annual Salary (Including KRW 100,000 per month for lunch expenses)

• Bonus

• Fixed Allow ances

Legal Allowances

• Legal Allowances

Variable Bonus

• Variable Bonus

EmployeesPOSCO PLANTEC firmly believes that employees are the most important stakeholders and that it is their happiness that brings about sustainable growth of the company. This is why we strive to establish a culture of lively communication with employees, provide competitive welfare benefits and create a healthy and happy workplace.


Index 2009

(Before the integration)2010

(POSCO PLANTEC) Note

Happiness Index 50% 70% 20% P up

Labour-Management Trust Index 62.3% 71.8% 9.5% P up

Organizational Trust Index - 71% First of its kind

POSCO PLANTEC is holding the company-wide “Tearing Down the Wall Workshop” every year where all employees attend to build trust among themselves.

The workshop serves to help the company and employees unite as one in terms of vision, strategy and goal, bring vitality to business operations through the employees’ motivation for change on their own and greatly enhance their commitment to work. It offers such diverse programs as CEO meetings, hands-on challenging training, creation of sculptures for vision sharing and marine boot camp training to encourage employees to have open-minded dialogue together.

According to the survey of workshop attendants, 94.3% of total were more than satisfied with these programs and particularly preferred physical programs including hands-on challenging training and team work building training which gained 4.5 points of satisfaction level on a scale of 1 to 5.

Culture of Communication

POSCO PLANTEC is fully aware of the importance of labour relations as a top management priority. We are working to enhance mutual interest of labour and management and deal with relevant issues through regular Labour Management Council meetings. In so doing, we are moving towards productive labour relations, ethics management, increased quality of life for employees, labour-management cooperation and improved labour relations based on trust and communication.

Communication between Labour and Management

We recruited new hires and employees with experience in 2010 through open recruitment: 10 new recruits in the first half and 21 new recruits and 8 employees with experience in the second half. Our employees are free from any discrimination regardless of gender in terms of basic pay and compensation rates.

Recruitment of New Employees

POSCO PLANTEC employees eligible for union membership are 314 persons in number and 25 employees or 8% of them are unionized. Our corporate policy clearly stipulates that important modifications in the conduct of business should be discussed between labour and management and notified to employees based on collective negotiations.

Labour Union Membership

POSCO PLANTEC is surveying employees’ Happiness Index every year to help them become a better performer. Happiness index refers to both intelligent and emotional engagement with work and we also conduct job commitment and employee satisfaction surveys.

According to the survey we performed of 505 employees in October 2010, their happiness index skyrocketed by 20% from 2009, a year before the integration of 2 former POSCO affiliates to create POSCO PLANTEC. In addition, the labour-management trust index rose by 9.5% to 71.8%. The organizational trust index, surveyed for the first time in 2010, turned out to be 71%, which we believe is fairly high compared to 72% of POSCO.

Happiness Index Survey

Day 1 Day 2 Day 3

Sharing vision and understanding each other

Building a culture of communication and trust

Enhancing the spirit of challenge and team-work

Positive Transformation of POSCO PLANTEC Corporate Culture

314

25 employees (8%)

▶ Happiness Index:

How much am I engaged with the work that I do?

Is my engagement translated into action?

▶ Commitment: How much am I committed to the work that I do?

▶ Satisfaction: How much am I satisfied with working here?

POSCO PLANTEC saw its first-ever female member elected to serve at the Labour Management Council through staff voting at the 5th council election on October 13, 2010. The council has 7 labour representatives and the presence of a female member is bringing about positive effects regarding respect for women’s rights and diversity.

The Labour Management Council is working hard to encourage employees to have babies through the payment of “childbirth grants”. This program, launched in 2011, offers a stroller for the first baby born, a car-seat and a baby go-cart for the second child and a full suite of baby products worth KRW 2 Million starting from the third child and on.

First Female Labour-Management Council Member

POSCO PLANTEC is committed to dealing with difficulties and grievances our employees face through the Happy Call Center and Labour Management Council meetings.

The Happy Call Center takes a tour around our business sites and offers counseling twice a month together with the Labour Management Council to address employee’s complaints. Additionally, phone & e-mail counseling programs, the grievance counseling center, work helper-assisted Q&A systems, direct counseling with top management and many other diverse activities are going on.

We were able to address 72 cases including a request for office space for dispatched emloyees in 2010 and 26 cases including the improvement of Family Day in the 1st half of 2011. In particular, our employees are encouraged to leave work at the regular time on every Wednesday designated as Family Day through intranet pop-ups and songs played by in-house radio programs that emphasize the imporance ot family happiness.

Employee Grievance Handling

In order to promote organizational stability based on trust and communication and to build a mutually-beneficial corporate culture through participation and cooperation, we offer counseling programs for employee family members to enable them to find solutions to their personal problems with the help of professional counselors and legal counseling programs where legal problems can be resolved through the consultation with practicing lawyers. We also hold position-specific meetings to deal with employee grievances on the spot.

The number of legal counseling sessions is increasing from 5 in 2010 to 5 in the first half of 2011 and these legal consultations primarily addressed daily legal problems such as apartment transactions and traffic accidents.

Professional Counseling Programs

Employee safety and health issues are on the formal agenda of negotiations with the Labour Management Council. We have the Health and Safety Committee up and running and 7 labour representatives and another 7 management representatives meet regularly on a quarterly basis to carry out wide-ranging activities to promote employee health. The committee hosted a walkathon event together with the Labour Management Council for POSCO PLANTEC employee families and employees working for outsource partners on April 30, 2011 near Nam Mountain in Gyeongju. The committee also distributes health-up cards and anti-alcoholic cards to help our employees monitor and promote their fitness on a daily basis.

Operation of the Health and Safety Committee

POSCO PLANTEC is in full compliance with the Labour Standards Act and guarantees that our employees, regardless of gender, are entitled to childcare leave and can return to work later without any discriminations. No childcare leave applications were submitted in 2010 and there was 1 male employee who returned to work after childcare leave back in 2007.

Reinstatement Ratio after Childcare Leave by Gender

We allow retirees-to-be to be free from all types of work 6 months prior to their retirement to help them plan their life after retirement. We are also considering to raise the retirement age.

Retiree Programs


employees

Pay (KRW 10,000) No. of New Hires (No. of persons)

Male Female Male Female

2011 3,514 3,514 19 9

2010 3,341 3,341 39 4

Labour (Mutually-beneficial Labour-Management Culture)POSCO PLANTEC’s labour relations are based on communication and cooperation. We also assist our employees in maintaining stability of their livelihood and enhancing the quality of their life and create a workplace where they can fulfill themselves.


We promote the quality of life and occupational safety for our employees through the creation of comfortable and safe working environments based on a people-centered philosophy. We also build a scientific and systemized employee health and safety framework to ensure sustained prevention activities in order to establish a culture of safety, growing into a world-class professional engineering company.

Health and Safety Goals

We fully commit ourselves to the people-centered management philosophy through the declaration of zero tolerance for safety accidents. The declaration ceremony was held on February 14, 2011 to create a healthy and accident-free workplace and to join the Safety 3.0 initiative launched to build a people-centered culture among POSCO family companies.

After the declaration, we have been working proactively to meet the goals we set ourselves in the 3 areas of safety, health and environment. For detailed action plans, the scope of safety activities will be expanded from on-site safety acts observation to health care activities in the office. In addition, our health and safety management systems will be optimized, position-specific safety assessment systems will be established, roles and responsibilities of managers in charge will be strengthened and greater focus will be put on the prevention of accidents in the construction business.

In order to promote employee health, we encourage employees to fill out health-up cards to monitor whether they diligently follow health promotion guidelines in respective departments on a monthly basis. The best performing department is awarded at the end of year and those who need intensive health care are identified and managed continuously.

Declaration of Zero Tolerance for Safety Accidents

In order to reduce safety accidents to zero and improve the safety culture index, we are taking a 3-dimensional approach of Planning Safety, Professional Safety, and Total Safety.

Planning Safety is about top management’s commitment to and participation in safety activities, management of safety targets and creation of motivation. Professional Safety refers to clarification of roles and responsibilities of the line organization, creation of an efficient safety organization, and efficient operation of safety management systems. Total Safety includes health and safety training to build an increased awareness of safety, safety audits to remove safety-threatening factors in advance, and compliance with safety standards in the workplace.

POSCO PLANTEC Total Safety Initiatives

With company-wide anti-smoking initiatives, POSCO PLANTEC designated all of its business sites smoking-free in April 2009. We have been fully committed to anti-smoking programs since then and our employees have been active supporters of such programs. All POSCO PLANTEC employees signed the written pledge to stop smoking and the company paid them incentives to make POSCO PLANTEC completely smoking-free in September 2009. Such programs include anti-smoking campaigns, responsible anti-smoking management programs, sending anti-smoking campaign newsletters to employee families, anti-smoking training for new hires and current employees.

Anti-smoking Programs

POSCO PLANTEC is engaged in health promotion activities to enhance the health index of employees as part of its management strategy. In particular, we monitor health conditions of individual employees to increase their health index and are working to make all employees stop smoking with anti-smoking campaigns.

Health Promotion Activities

Our safety audits are classified into system audits and Safety Acts Observation (SAO): system audits are conducted of job duty performance in respective positions half-yearly to enhance awareness of safety and SAO is to monitor safety acts of workers on the spot and perform health care activities in the office in an effort to move towards a safe and healthy workplace.

Safety Audit

Achievements and Activities of Safety Programs Awards and Certified Systems on Safety Activities

Year Major Achievements

Nov. 4, 2009 Won the KOSHA(Korea Occupational Safety and Health Agency) President’s Certificate Plague for achieving 9-time accident-free operations

Aug. 26, 2008 Extended evaluations for KOSHA 18001 for health and safety management systems

Jan. 14, 2008. Received the KOSHA President’s Certificate Plague for achieving 8-time accident-free operations

Jul. 2, 2007 Won the Prime Minister’s Commendation in the Occupational Health and Safety Week event in 2007

Sep. 30, 2005 Extended evaluations for KOSHA 18001 for health and safety management systems

Oct. 24, 2002 Certified with KOSHA 18001 for health and safety management systems

Jul. 1, 1996 Won the Labour Minister’s Commendation in the occupational accident prevention category at the 29th Occupational Safety and Health Conference

Jun. 16, 1995 Received the Grand Prize in the National Safety Management Success Story Competition

Jul. 1, 1993 Received the Presidential Commendation in the occupational accident prevention category at the 26th Occupational Safety and Health Conference

May 26, 1993 Won the Excellence Award in the Accident-free Program Competition in 1993

Dec. 5, 1985 Received the Labour Minister’s Plague of Accomplishment for achieving 5-time accident-free operations

Stage 1 : Understanding the current situation and offering motivation (Feb. –Mar. 2011)

▶ Improving employees’ health index

- Individual health counseling cards

▶ Encouraging employees to take action to stay healthy

- Distributing health-up cards to individual

employees and managing them

▶ Anti-smoking Programs

- Aligned operations of anti-smoking clinics

and the anti-smoking call center

Stage 2: Boosting health promotion activities (Apr.-Aug. 2011)

▶ Stay Healthy campaign

- Distributing anti-alcohol cards and

anti-drinking cards

▶ Anti-smoking programs

- Random smoking tests, inspections of common

smoking areas, exhibitions of photographs that

warn of harmful effects of smoking

Stage 3: Evaluation and analysis (Sep.-Nov. 2011)

▶ Selecting the top-performing department in

regular health check-ups

- Awarding company CEO’s prize to the top performer

▶ Providing continuous health care services to those

with medical symptoms

▶ Sending newsletters to families of employees at high

risk for cerebrovascular/cardiovascular diseases and

distributing health care diaries to these employees

▶ Carrying out anti-smoking programs continuously

• We make employee health and safety our top priority.

• We thoroughly comply with legal and corporate code of conducts on health and safety.

• We build awareness of safety and executive capabilities through training.

• Managers are responsible for health and safety of their respective departments.

All employees are obligated to take part in health and safety activities.

• We examine and improve the compliance level of overall relevant criteria.

• We ensure employee health and safety becomes our top priority in the entire

work process.

• We build integrated health and safety management systems

with related companies.

• We ensure zero tolerance for all safety indicators.

Business Principles on Employee Health and Safety

Manuals

Regulations

Guidelines

Health and safety manuals

(Management guidelines on health and safety)

25 health and safety regulations

(Procedures and methodologies)

46 health and safety guidelines (Detailed activity criteria)


▒ Unit _ %Injury Rates (Company Average)

0.482009

0.162010

▒ Unit _ %Injury Rates (National Average)

0.702009

0.692010

▒ Unit _ %Severity Rates

0.092009

0.042010

▒ Unit _ %Frequency Rates

1.662009

0.432010

▒ Unit _ hoursTotal Working Hours

1,811,4762009

2,326,1242010

▒ Unit _ daysWork Loss Days

1682009

992010

Health and SafetyPOSCO PLANTEC believes that employee’s safety and health must be protected as their basic right under any circumstances. We are making our business more sustainable by improving the quality of life and occupational safety for our employees.


POSCO PLANTEC clearly stipulated the necessity of social-giving activities and detailed action plans in its corporate philanthropy master plan. Our community involvement is categorized into five areas of community volunteering, voluntary helper activities, support for culture and art, scholarship, and job creation and we are to boost these endeavors further in the upcoming years.

Corporate Philanthropy Framework

Corporate Philanthropic Activities

Major Programs

Community Volunteering

Support for sisterhood villagesEnvironmental clean-up activities for local communityVolunteering for social welfare facilitiesCreation of volunteer groups at overseas sitesEnvironmental protection activities-One Company One Mountain campaign (Sanyeo Valley near Unje Mountain)

Voluntary Helper Activities

Supporting the needy in sisterhood villagesSupporting facilities for those in need (Wild Flower Village-nursing home for the elderly)

Support for Culture and Art

Holding cultural and art eventsSupporting cultural and art organizations (Taking part in Mecenat programs)

Scholarship Offering scholarships

Job Creation One Company One Social Enterprise campaign (Supporting Silla Culture Institute)

At POSCO PLANTEC, our employees volunteered for 33.4 hours per person on average including Korean and overseas social giving activities in 2010. We provided e-learning courses to build consensus of corporate philanthropy among employees. Our initial target was to educate 250 employees on social contribution agenda in 2010 but these courses were taken by as many as 446 employees, exceeding the original target by 78%.

Corporate Philanthropic Achievements

▒ Unit _ hours

Kimchi-making Event Scholarship of Love Awarding Ceremony One Company One Mountain Campaign Clothing Donation of Love to Timor-Leste

Volunteering per Employee

2010 33.4

2011 Target 36.0

*Excluding KRW 1 Billion invested in the High-end IT Talent Promotion Project by the Ministry of Knowledge and Economy of Korea

We have been a leading contributor to municipal development of Pohang City with special affection and interest in the local community and a diligent volunteer for sisterhood villages, helping improve the health of our society. Our endeavors were recognized by Pohang City with the citation for outstanding social contribution activities in local community on December 6, 2010.

Awarded for Outstanding Social Contribution Activities

Supporting Sisterhood Villages and Welfare Facilities in Local Community

We donated KRW 18.98 Million to 21 families in need in 7 sisterhood villages, 10 families in need and physically challenged people in local communities and 2 social welfare facilities.

Voluntary Helper Activities

Offering helping hands to rural villages with sisterhood ties _ In Pohang,

295 POSCO PLANTEC employees and 33 outsource partner employees

volunteered twice to help local farmers in digging sweet potatoes and

thinning fruit trees. In Gwangyang, 48 POSCO PLANTEC employees offered

their helping hands to rural villages twice, harvesting chestnuts and helped

make kimchi for the needy.

Donate Your Blood, Share Your Love Campaign _ Some 100 POSCO PLANTEC

employees took part in the Donate Your Blood, Share Your Love campaign twice.

Support for the Amateur Boxing Association in Pohang _ Our employees

donated KRW 1 Million to the Amateur Boxing Association in Pohang City in

July 2010, offering words of encouragement and cleaning the environment

near the boxing ring.

“One Company-One Mountain” Clean-up Program _ We chose Unje

Mountain in Pohang as our volunteering target under the One Company-

One Mountain clean-up program and have been engaged in environmental

cleanup activities near the mountain on a monthly basis.

Other Local Community Volunteer Activities _ We are supporting the

development of local community in various ways, donating KRW 3 Million

to the Pohang Crime Victim Support Center on July 27, 2010 and KRW 5

Million to the 7th Pohang International Fireworks Festival on July 29, 2010.

Volunteering for Local Community

POSCO PLANTEC held the ‘Clothing Donation with Love’ event for people

in Timor-Leste on March 29, 2010. The event was held as part of our global

social contribution programs in Timor-Leste where we have an on-going

project. It was even more meaningful that other POSCO family companies

and our outsource partners joined us in the event as they happened to

learn about the program through a volunteers’ meeting in Pohang. The

clothes donated went to help those less privileged in Timor-Leste.

Clothing Donation with Love to Timor-Leste

We set up the “POSCO PLANTEC Scholarship” program in April 2010 and gave scholarships to elementary, junior high and high school students living with grandparents only in 4 sisterhood villages in Pohang and 3 villages in Gwangyang. We also held the first scholarship awarding ceremony on May 7, 2010 in the Pohang Social Welfare Center to help students in other regions recommended by Child Fund Korea.

Scholarship

We made contributions to Pohang University of Science & Technology

(POSTECH), which was chosen as a leader of the ‘High-end IT Talent

Promotion Project’ supported by the Ministry of Knowledge and

Economy. POSTECH aims to become one of the top 3 IT convergence

education providers and research institutes and we have donated

KRW 1 Billion in total to assist the university in promoting the Korean

IT industry, presenting future visions and delivering innovative

products by fostering creative and outstanding talents.

Support for the High-end IT Talent Promotion Project

Minister of Infrastructure of Timor-Leste Pedro Lay visited POSCO PLANTEC

on May 12, 2010. We are working on the Belulik bridge construction project

in the country and made a bid for the Oecusse bridge construction project

there, participating in global social infrastructure construction business.

These activities help us create employment as well.

Job Creation through the Expansion of Social Infrastructure Abroad

One Company-One Social Enterprise Partnership

Our One Company-One Social Enterprise partnership is to help create

jobs in local community. We are donating to Silla Culture Institute, a

social company located in Gyeongju, providing necessary supplies and

encouraging our employees to take culture and education courses held by

the institute, helping it create jobs for local people.

Job Creation

We launched the H1N1 prevention campaign for 150 children from low-income

families who are living with grandparents only or work as sole breadwinners

without parental help in January 2010, improving the health of the community.

To help victims of the tragic earthquake that hit Japan in March 2011, 482

employees voluntarily donated KRW 4.11 Million and the company made the

same amount of donation in matching grant, giving KRW 8.22 Million in total to

the Korean Red Cross.

H1N1 Prevention Campaign

Donations to Earthquake Victims in Japan

Category POSCO PLANTEC

POSCO Family Joint Volunteer Group

Outsource Partners

Total

No. of Piece of Clothing 4,555 2,585 1,038 8,178

Cultural Events Joined by Local People in Pohang

To give employees a greater pride and honor to be part of POSCO

PLANTEC after its establishment and to enhance our solidarity with the

local community, we held the “POSCO PLANTEC! Concert of Harmony with

Poetry and Music” event on June 28, 2010 where our employees and local

people in Pohang had a chance to get together and mingle with each other.

The concert, under the three themes of ‘place of passion', ‘place of culture',

and ‘place of harmony', started with a street parade performed by a Korean

traditional percussion band and provided an outlet for POSCO PLANTEC

employees and local people to show their talents while united as one. It

offered a valuable opportunity for the audiences to get to know each other

through a variety of cultural performance.

Additionally, we took part in local cultural events including the One Heart

Festival joined by our sisterhood villages.

Support for Culture and Art

We concluded a Mecenat sponsorship with Pohang Art Chamber

Orchestra to donate KRW 5 Million annually in order to become

a company admired by local community and employees. We are

engaged in volunteer music performance events in local community

and music concerts for employees.

Mecenat Sponsorship for Local Cultural and Art Organizations


▒ Unit _ KRW 10,000Social Contribution Expenditure

▒ Community Volunteering

▒ Voluntary Helper Activities

▒ Support for Culture and Art

▒ Scholarship11,754

5,129

1,890

3,645

1,000Community Involvement and DevelopmentPOSCO PLANTEC is to increase its participation in the development of local communities where it operates. We are determined to maximize our performance regarding community development by supporting these communities in a regular and sustained manner.

(Unit: No. of pieces of clothing)

34 35POSCO PLANTEC SUSTAINABILITY REPORT 2010 CREATIVE MANAGEMENT

Technology Innovation 36

New Growth Business 38

Talent Development 40

Our Creative Management

Machining & Manufacture Facilities at POSCO PLANTEC

POSCO PLANTEC is taking great leaps forward with superb technologies and challenging spirit.

• Technologies:

Overcoming the limitations in technology emulation and catching up and developing proprietary products

and exclusive technologies as the front runner, thus contributing to creating customer value

• The World:

Growing into a global company by expanding production sites and marketing scope to the global stage

and establishing new businesses and diversifying growth axis

• Challenges:

Expanding sustainable growth by fostering creative talents and strengthening their challenging spirit so

that they could survive the worst strikes


POSCO PLANTEC established POSCO PLANTEC Research & Development Center on December 1, 2010 to conduct systematic R&D activities in conjunction with POSCO Technical Research Laboratories, Pohang Research Institute of Industrial Science and Technology and POSTECH Research Institute. The goal of the Vision 2020 is to develop exclusive engineering technologies amid the awareness of the need for technology development in core businesses in order to achieve mid-and long-term management goals. POSCO PLANTEC Research & Development Center’s founding principles are two-fold: creation of business feasibility by intensifying competencies in commercialization and securing of core technologies through stronger technological competencies. Under the initiatives, it will contribute to enhance business feasibility through stronger competencies and carry out R&D to gradually secure core technologies.

POSCO PLANTEC Research & Development Center Opened

Fluidized bed boilers for generating power from domestic waste

The total amount of waste including the industrial waste in Korea increased by 8 percent per year up until 1991, but has slightly dropped or has not increased dramatically since 1992. Then, in 1996, the volume went up again. POSCO PLANTEC is currently developing technology facilities to recover new and renewable energies that produce electricity by turning the domestic waste that used to be simply reclaimed or incinerated into resources. We take part in developing exclusive technology models for POSCO’s exclusive waste-exclusive power generation systems (fluff-type boilers). Our goal is to secure technologies comparable to advanced ones by expanding our business abroad, especially to China and Southeast Asia.

Eco-friendly Technologies

Long Bag Dust Collectors Dust collectors are devices countering air pollution by filtering or preventing the emission of harmful particles included in gas emissions from plants as well as various types of particulates in the air causing air pollution. As gas emissions enter the bag filter, it serves as a barrier to remove the dust. POSCO PLANTEC is now equipped with design technologies of the long bag filters that are over 10 meters long, up from 6 meters before. By using the long bag filters and filtering the dust at a high speed, the installation space is reduced by 35 percent to save space. Moreover, energies are saved by 18 percent due to the operational control for low differential pressure.

Energy Reduction Technologies

CSU The CSU (Continuous Ship Unloader) is equipment that continuously unloads raw materials such as iron ores and coal from ships using continuously arranged buckets in the form of bucket elevators. This enables smooth unloading even in every corner of the hatch due to its swing functions. Thanks to the catenary functions, unloading on the floor without harming can minimize the bulldozer works. As a result of continuous unloading works, the unloading efficiency is high and there is no flying arsenic acid as it is a shut-off type. Moreover, energy is reduced due to the higher mobility and lower speed, thus automating and optimizing the operation of back-end facilities, reducing the overall facility operation.

Process Innovation

Research Centers of POSCO PLANTEC

(Technology Creation Group)

▶ Research on specialized equipment and future

growth projects

Dec. 2010

New Technology Development Department, POSCO

Machinery & Engineering

▶ Research on logistical automation systems and

new and renewable energies (photovoltaic energy and wind energy)

Mar. 2009

New Technology Development Department,

POSCO Machinery & Engineering

▶ Research on mid-and long-term development projects

(fuel cells, micro-level steel plates, plating)

Dec. 2006

New Technology Development Department,

POSCO Machinery & Engineering

▶ Research on alternative energies

(photovoltaic energy and hydrogen cells)

Sep. 2003

R&D Team, POSCO Machinery & Engineering

▶ Research on logistical automation systems

Dec. 2001

Milestones of POSCO PLANTEC Research & Development Center

Sand + Slaked Lime

Domestic Waste

AirCombustion

Tube

Cyclone Boilers

Ash

Vapor Turbines

Electricity Generation

Desulfurizer, Dust Collector

Water Purification Water

Water

Gas

Electricity

Creative ManagementPOSCO PLANTEC SUSTAINABILITY REPORT 2010

Technology InnovationPOSCO PLANTEC is achieving green growth, developing eco-friendly technologies through enhanced synergies among stakeholders, stronger manufacturing competencies, innovative thinking, challenging spirit and distinctive capabilities. We will realize the values benefitting ourselves and customers through innovation as an engineering company that leads global plant technologies in the 21st century.


PV energy is to convert the light energy from the sun into the direct electric energy to generate power. We have advanced into Changnyeong, Uiseong, Yeongcheon, Bonghwa, Goheung, Buan and Haenam and also Europe including Italy and Asia to conduct PV projects, while Pohang Steel Mill is with a roof-type photovoltaic power plant for warehousing plates.

Photovoltaic Generation

Solar power generation is one of our core green growth business areas. This is differentiated from photovoltaics in that it not only generates power but also can be used for air-conditioning, heating and hot water supply through the absorption, storage and thermal conversion of solar energy. We are

working on various solar projects today with the exclusive right to manufacture and construct solar power generation systems in 11 countries that we won through the strategic partnership with Earth Power Holdings of the U.K. that was concluded in April 2011.

Solar Power Business

Even gentle breezes are precious energies. Wind energy is to generate power by converting the wind power into electricity. As it can be generated anywhere using the energy source, petroleum and gas imports can be reduced to produce electricity. POSCO PLANTEC has advanced into this field based on the know-how in installation and operation of various wind turbines.

POSCO PLANTEC is committed to take part in producing towers and turbine generators and generating power offshore by establishing wind power production facilities. We won the order for the Gyeongpo Wind Power Project in September 2010 and are working on technology development.

Wind Energy

Automation projects are our new value creating ones we newly focus on as they are at the forefront of innovative technologies making new paradigms in automation. We contribute to enhanced quality by pushing ourselves forward to improve facilities and processes so that our customers could achieve the highest efficiency with the best technologies and optimal facilities.

Automation

Geothermal energy projects are to develop and distribute systems through geothermal energies including hot water and rocks under the ground surface.

Geothermal Energy

POSCO PLANTEC is concentrating efforts on its competencies in manufacturing facilities including heat exchangers and tanks that are supplementary to the plant facilities for nuclear power as a fossil fuel substituting energy source, stainless structures and iron plates for reactor buildings.

Nuclear Energy

Robot automation contributes to higher productivity and work proficiency as robots replace human workforce in harmful sites and inefficient environments. By forming consortiums with prestigious research institutes, we develop automation robots.

Industrial Robots

Achievements

- Gwangyang Steel Mill 1 and 2 equipped with dross-removal robots on the CGL pot

Development Projects

- Developing automation robots for constructing refractory materials

- Developing wearable robots

Compressor Expansion Valve

Exchange Lamp

5m50m

Geothermal Loop Pipe

Condenser

Heat Exchanger


New Growth Business POSCO PLANTEC unfolds eco-friendly projects to enable harmonious living of the human beings and the nature. As we are at the forefront of low carbon green growth where we pursue higher growth while minimizing resources usage and environmental pollution, we are committed to make our environment cleaner and greener through various eco-friendly energy projects on PVs and wind energy, etc.


Our goal in fostering talents is to foster creative knowledge workers. The newly recruited are to conduct autonomous learning in conjunction with the HR: assessment is made on position-specific training on different competencies including fostering character build-up, leadership competency for trust building among juniors, seniors and colleagues through communication, competency in professional work to foster sector-specific talents and global competency to enhance language and business skills. By doing so, we end up fostering competitive talents that will lead POSCO PLANTEC touting the world-class technologies.

Fostering Talents

System to Foster Project Manager & Construction Manager

We have conducted our exclusive talent fostering programs since 2010 to grow into a world leading engineering company. The system is no longer outsourced as we exclusively foster PMs (Project Managers) and CMs (Construction Managers) befitting our title as a world leading engineering company through systematic courses on job-specific competency building.

A total of 34 in-house instructors completed the in-house fostering course in 2011, who conduct exclusive job-specific competency building with the materials they have compiled.

Certified Professional Fostering Program

The POSCO PLANTEC Certified Professional (PCP) is in place where competent engineering candidates are selected in areas that required professional skills that cannot be mastered over the short term and taught professional engineering missions for one or two years. Once they reach the top level in POSCO PLANTEC, they are given the title of ‘Junior Masters,’ who, in turn, are escalated to become ‘Senior Masters’ once they teach the global top level. Currently, there are two candidates for Junior Masters.

Multipurpose Space for Creativity Building and Problem-solving Techniques

We opened the Pleka, a space to encourage communication among employees and creative thinking on September 16, 2010. The word is a combination of ‘Eureka’ first shouted by Archimedes, the ancient Greek mathematician and POSCO PLANTEC. As such, we broaden department-specific meetings and workshops in this cultural space and communication among employees and creative thinking through brainstorming.

POSCO PLANTEC also enhances problem-solving skills through POSCO Group-style ‘creative problem-solving techniques’ combining various techniques such as 6 Sigma, Action-based Strategies, TRIZ and Consolidation-based Strategies, thus providing help its employees to grow as global talents.

Key Talent Fostering Program

POSCO PLANTEC, since its merger in 2010, significantly increased the training hours and budget. This is attributable to several training programs including a program to break the wall enterprise-wide, Book Academy and more intensive management of managers in charge. The training cost versus revenues amounts to 0.15%.

▒ Unit _ staffNo. of staff trained

5,9952010

First half of 2011 5,211

▒ Unit _ hoursTraining hours per head

182.82010

First half of 2011 121

▒ Unit _ KRW thousandTraining cost per head

1,1382010

First half of 2011 658


2010

70 %

2011

72 %

2012

74 %

KPI Training Satisfaction Level

▒ Unit _ hoursTraining hours per head

G1 260

G2 200

G3 170

G4 155

* Average : 180 hours

Training Structure

Category Common Competencies Leadership Competencies Job Competency Job Competency

G1

G2

G3

G4

Basic character building (e-learning)

Language proficiency enhancement

(phone, academy, outsourcing)

Management(strategic management/

proposal of visions)

Performance(coaching/fostering/

performance management)

Execution(negotiation/

communication)

Management(inter-personal relations/

problem-solving)

Management(self-management)

Book Academ

y (monthly)

IT (e-learning, social contribution)

Trust leadership (competency assessm

ent categories)

Netw

orking (once a year)

Business(training for staff in overseas representative

offices, business competency)

Labor-managem

ent mindset (m

anagers in charge)

Security, innovation, safety

Global PO

SCO w

ay, corporate ethics

Category Technical Sector Support Sector Common Sector

Advanced Course

High-level engineers (e-learning, outsourcing)

Corporate managers (e-learning, outsourcing)

Intermediate Course

Intensive PM/CM Course

(outsourcing)

Intensive management support

(outsourcing)

Practices in PM (in-house and outsourcing)

Practices in management support

(outsourcing)

Beginners’ Course

Technical Course (in-house)

General management support

(in-house)

In-house training, training for POSCO Group, CDPNew

hires

Newly promoted Assessment Job title

Global Language Training

Pleka Session

Training

Talent DevelopmentWe pursue to become a world leading engineering company. We believe that our VISION 2020 can be achieved by fostering talents and we do so with utmost efforts.

POSCO PLANTEC has actively recruited globally competitive talents to grow into a world leading engineering company since its merger on January 1, 2010. Since the first half of 2011, we have run an advanced recruitment assessment system to select competent talents titled ‘Structural Selection Mechanism.’ The system is based on the competency assessment method titled ‘Assessment Center’ whereby various interview methods are utilized to enable comprehensive assessment on recruits – analytical skills, organizing skills, communication competency and leadership. In particular, assessment is made on applicants’ potentials instead of current capabilities, selecting talents who can grow along with us.

Securing Talents

Patent training (related staff)

Fostering in-house instructors (34 people trained)

42 43POSCO PLANTEC SUSTAINABILITY REPORT 2010 ENVIRONMENTAL MANAGEMENT

Our Environmental Management

Global Environmental Management 44

Environmental Pollution Prevention Project 45

Climate Change Response 46

PV Project 48

PVs Installed by POSCO PLANTEC

POSCO PLANTEC strives to lead the low carbon green growth by securing environmental soundness

based on technology development and open communication, recognizing the environment as the core

element in management strategies.

• Environment:

Establishing an eco-friendly identity by executing all management activities in consideration of environmentally

ethical aspects.

• Green:

Initiating changes in processes for environment issues and expanding the low carbon green growth projects

• Future:

Establishing long-term master plans for a paradigm change in the future industries and setting up a system for

environmental management


POSCO PLANTEC unfolds production activities, believing that environmental management and quality management are the bedrock of the management decision making to fulfill its social responsibilities to protect the earth. We set the following environmental management guideline to comply with environmental regulations, prevent environmental pollution and initiate activities to making consistent improvement.

Environmental Management Guidelines

Gwangyang Steel Mill’s Project to Replace the Sludge Treatment Facilities for Organic Waste Water

POSCO Gwangyang Steel Mill’s belt press facilities used for treating waste water in each region of Utility 1, 2, 3 and 4. Thus, environmental issues such as pollution of surroundings and occurrence of bad odor as condensed water is generated in treating waste were addressed through the facility replacement. This contributed to enhanced productivity and the prevention of water pollution.

The Gumi Barrage Floodgate Project

POSCO PLANTEC initiated a project to supply water gates and additional facilities for the Gumi Barrage in Section 30 of Nakdong River as a part of the Four Major River Development Project of the Ministry of Transport, Land and Maritime Affairs.

Water Quality Prevention Project

Pohang Steel Mill’s Hwaseong Plant: High-Density VOC Improvement Project

Some facilities have been exposed to heat for long, become obsolete and generated bad odor due to corrosive gas generated from the COG purification process of POSCO Pohang Steel Mill’s Hwaseong Plant. As such, the high-risk facilities in fire, explosion and environmental pollution due to gas leakage upon continuous usage were constructed for renewal. This contributed to the prevention of industrial damage and air pollution.

POSCO Specialty Steel’s Dust Collection Construction Project

This project is to construct dust collectors(38,000㎥/min) in the rear of 60-ton electric furnace under the commission of POSCO Specialty Steel. The contract was signed on July 30, 2010, and the construction was completed on November 18, 2011. POSCO PLANTEC solved air pollution problems for corporate clients through this project.

Pohang Steel Mill’s Heating Furnace Product Gas Purification Facility Project for Wire Rods 2,3/Plates 1,3

In POSCO Pohang Steel Mill Project, materials that mostly block COG pipe of heating furnaces for wire rods 2,3/plates 1,3 such as tar, dust and moisture are effectively removed with the installation of tar and moisture elimination devices. Such blockage and corrosion prevention contributed to higher productivity and air pollution prevention.

Air Pollution Prevention Project

P O S CO P L A N T E C a c q u i r e d t h e environmental management system (ISO 14001) certificate from LRQA Korea on November 18, 2010, systematically managing its environmental pollutants. The acquisition was significant in that the integrated environmental management system of the POSCO family is in place, paving the way for POSCO PLANTEC to exert its green corporate image in and outside POSCO PLANTEC.

Integrated Environmental Management System

Environmental Management Guidelines

To minimize the ecological footprint in

consideration of all business activities

impacting the environment to achieve low

carbon green growth .

To do the utmost in environmental conservation by efficiently utilizing energy

and resources and minimizing waste.

To set environmental goals and specific action plans and practice them to

minimize the environmental impact by complying with environmental

regulations and consumers’ requests.

To continuously conduct activities

to improve the environment, while

spearheading the efforts in education,

awareness reforms and technology

development for continued development

in environmental management.

Environmental Management


Global Environmental Management POSCO PLANTEC’s management paradigm is to adapt to changes. Under our environmental management guidelines, we pursue harmony in the economy, society and environment, moving forward with the belief that risks in environmental management are directly linked to the corporate value and business and are critical to corporate competitiveness.

POSCO PLANTEC specialized in engineering does not only prevent environmental pollution in POSCO PLANTEC but also enhances sustainability for customers in environmental performance through engineering-based air pollution and water pollution prevention projects.

Prevention of the Environmental Pollution


POSCO PLANTEC is engaged in various green activities to reduce GHG from March 2011 – maintaining the appropriate temperature level in the office, not using individual electric devices, improving cooling and heating systems and installing individual switches for fluorescent lights.We also recycle floor mops and operate recycling bins to reduce various types of waste.

GHG and Waste Reduction

POSCO PLANTEC is taking actions on the environmental management guideline, actively promoting the environmental management in conjunction with partner companies.

Activities to Facilitate the Environmental Management System (ISO 14001)

POSCO PLANTEC is currently intensifying courses on the environment in the POSCO Family green campaign.

Participating in the POSCO Family Green Campaign

Our environmental clean-up volunteers have continued to help with trash pick-up and weeding near Sanyeo Valley of Unje Mountain and Chilseong Stream that meets Hyeongsan River to flow into Yeongil Bay in conjunction with our corporate philanthropic initiatives, contributing to restoring habitats for such animals as herons.

Environmental Protection and Habitat Restoration

▒ Unit _ Gasoline, Diesel(ℓ) / LNG (㎥)Fuel Usage

111,125Gasoline

Diesel

LNG

52,549

185,407

115,262

21,677

12,055

▒ 2010

▒ Unit _ GHG (t CO2) / Waste (kg/ton)GHG and Waste Discharges

1,887GHG

Waste

1,792

3.82

3.63

▒ 2010 ▒ 2011 Targets

▒ Unit _ Electricity Usage (kwh) / Tap Water Usage (ton)Energy

3,798Electricity Usage

Tap Water Usage

3,608

35

31.5

▒ 2010 ▒ 2011 Targets (Reduction Target : Electricity 5%, Tap Water 10%)

*Water Source : Jayang Dam, Yeongcheon City, North Gyeongsang Province

(Reduction Target : 5%)

▒ Unit _ kg/tonDesignated Waste Discharges

3.82Designated Waste Discharges 3.63

▒ 2010 ▒ 2011 Targets

▒ Unit _ Amount of Paper Used for Photocopying (pages) / Paper Cup Usage (EA) /Food Waste Discharges (kg)Daily Living

5,796Amount of Paper Used for Photocopying

Paper Cup Usage

Food Waste Discharges

2,898

261

131

2.07

1.04

▒ 2010 (Reduction Target : 50%)▒ 2011 Targets

▒ 2011 Targets

Waste Reduction Activities

Four Actions under the Green Start campaign

Category Details

Waste OilSetting appropriate replacement criteria after measuring the oil grade

Waste PaintRecycling painted containers (cans) and banning arbitrary disposal

Waste MopsRecycling depending on the pollution level Operating collection bins

Waste Welding Rods Separating waste matters

Category Details

Setting and Executing Environmental Management Targets

Setting department-specific targets and reviewing performances

Diagnosing and Evaluating the Environmental Management System

Reviewing and diagnosing the overall management of the environmental management system

Conducting Internal ReviewsTaking actions to complement on review outcome (requiring corrective measures)

Sharing the Environmental Management Guideline with Outsourcing Companies and Encouraging the Participation

Notifying e-procurement systems for the environmental management guideline

Conducting next stages after clicking the ‘Agree’ button for the environmental management guideline in accessing the system

Complying with environment-related points in the contract

Category Details

Participating in Courses on Environment

Having all employees to take POSCO environment courses (e-learning)

Conducting environment courses in each department

Conducting commissioned courses for reviewers and practitioners for the environmental management system

Environmental Audit and Consulting

Participating in audit and consulting activities

Green Family Campaign Participating in the POSCO Green Walk activities

• Walking up to the 4th floor

Encouraging one’s family to go green

• Biking

Encouraging one’s family to go green

• Using the public transit

Posting on the VIP board and complying with its guideline

• Car-pooling

Notifying the staff in POSCO PLANTEC to encourage one another to go green

Walking

• Turning off office devices upon leaving

Attaching green campaign stickers on office devices

• Turning off the office light during lunch

Attaching green campaign stickers on light switches

• Not using one’s personal electric devices to be recharged in the office

Monitoring employees if they use the office electricity for personal

usages (e.g. surveillance camera)

• Turning off the auto idling functions

Green campaign for each season and location

Turning Off

• Reducing one’s weight and waist size

Green campaign in conjunction with VP and using Health-UP Card

• Reducing the amount of reports and print-outs

Waging a campaign and regularly promoting it (notices, etc.)

• Not using paper cups

Distributing mugs to all employees and regularly promoting it (notices, etc.)

• Reducing food waste

Monthly awareness-raising campaign during lunch time

Reducing

Collecting• Switching off the tap water

Promoting to use personal cups for tooth brushing once a month

• Recycling POSCO PLANTEC-labeled envelops in the office


• Collecting used paper


• Separating garbage


Climate Change ResponsePOSCO PLANTEC is making responses against climate change by waging the Green Start campaign according to its environmental management guideline.

The campaign is under a strategy to reduce GHG emissions, energy usage and waste, while raising awareness among employees on environmental management so that they could act out green living in their daily life.

POSCO PLANTEC is unfolding the Green Start campaign participated by all employees, holding the ‘Green Start Campaign Launching Ceremony’ on March 7, 2011 to actively respond to environmental issues: climate change, energy reduction, waste management and water pollution.

Green Start Campaign

48 49POSCO PLANTEC SUSTAINABILITY REPORT 2010

In 2010, POSCO PLANTEC initiated three 3.7MW-PV projects including the Shinyang Energy Project in Goheung in South Jeolla Province region. In 2009, four 2.5MW-PV projects including the Korea PV Project in Yeongcheon in North Gyeongsang Province were carried out. In 2008, a total of 12 11.25MW projects including PV projects of POSCO Pohang Steel Mill and Gwangyang Steel Mill took place.

In 2010, our annual strategic production output through PV projects amounted to 10,774MWh, which is equivalent to the CO2 reduction of 4,864 tons.

PV Business in Korea

POSCO PLANTEC has advanced into the global market for PV business, contributing to lowering of CO2 through PV projects throughout Europe including Italy and Asia.

As for our PV project in Italy, we have completed 13 projects including the NF Solar Invest starting from the starting point of construction in 2010. With four more projects to be completed by October 2011, a total of 17 PV projects will have taken place in Italy alone. CO2 reduction effects as a result of the project in Italy are expected to reach 19,389 tons per year.

Overseas PV Projects

Amount of PV Power Generated in Korea and CO2 Reduction

Project Title LocationPower Generated

(MWh)CO2 Reduction

(ton/year)

Shinyang Energy Goheung, South Jeolla Province 929 419

Daedong Solar Buan, Jeonbuk 883 399

Goam PVChangnyeong, South Gyeongsang Province 2,052 926

Deokam EnergyHaenam, South Jeolla Province 1,303 588

Yongbang EnergyHaenam, South Jeolla ProvinceGyeongsang Province 1,090 492

Korea PVYeongcheon, North Gyeongsang Province 1,203 543

Urim PVUiseong, North Gyeongsang Province 266 120

Yeongjin Solar TechBonghwa, North Gyeongsang Province 1,268 573

Godan PV Gangneung, Gangwon 614 277

Geumseong PVGeumsan, South Chungcheong Province 1,166 526

Total 10,774 4,864

PV Power and CO2 reduction in Italy

Plant Name

Expected Amount of Power Generation

(MWh/year)

CO2 Emissions (ton/year)

SKY Casalbordino 2,470 1,115

SKY Elektron 1,372 620

Abacus 2,608 1,178

Tomas Lin 1,449 654

Energy Solution 1,369 618

Yellow12 1,409 636

Saticoy 2,753 1,243

K&L Energy 4,057 1,832

Melilli 2 1,304 589

Melilli 3 1,449 654

Melilli 5 869 393

Bondife 2 1,304 589

NF Solar Invest 5,548 2,505

SKY Calabria 6,658 3,006

ASWEP PV Plant 4,161 1,879

Sunmax PV Plant 2,774 1,252

Greenvalue PV Plant 1,387 626

Total 42,943 19,389 * tCO2/MWh=0.4515(Reducing CO2 by 0.4515 tons per 1MWh)

(Source: GHG Emission Factor in the Electric Power Statistics Information System of Korea Power

Exchange under the Ministry of Knowledge Economy, 2009)

POSCO PLANTEC plans to construct the largest-scale 28.95MW PV power plant worth costing USD 100 Million in the middle part of Thailand.

Planning to Construct a 28.95MW-PV Power Plant

▣ Pohang Steel Mill ▣ Shinyang PV (Goheung in South Jeolla Province)

▣ PVs in Goyang (Changnyeong in South Gyeongsang Province)

▣ Daedong Solar (Buan in North Jeolla Province)

KOREACO2 4,864tonReduction

▣ PVs in Italy▣ Groundbreaking Ceremony

CO2 19,389tonITALY

Reduction

CO2 Reduction Effects through PV Projects

ENVIRONMENTAL MANAGEMENT

Photovoltaic ProjectPOSCO PLANTEC is creating a happy future for the mankind by advancing into future businesses including new and renewable energies and eco-friendly businesses. We are committed to a cleaner and more abundant future for Korea.

51POSCO PLANTEC SUSTAINABILITY REPORT 2010 APPENDIX

APPENDIXOther Performance Data 51

Third-Party Assurance Statement 52

ISO 26000 Performance Report 54

ISO 26000 Compliance Performance 55

GRI G3.1 Index 56

Company History & Awards 59

Reader’s Feedback Survey 61

OTHER PERFORMANCE DATA

▒ Unit _ KRW MillionSuppliers/Partners

27,325 Material Cost 15,838

327,432 Outsourcing Cost 190,625

80.70 Portion of Sales (%) 82.50

▒ 2010 ▒ First Half of 2011

▒ Unit _ KRW MillionGovernment/Community – Tax Payment

5,783 Internal Tax 7,305

466 Local Tax 136


▒ Unit _ KRW MillionEmployees-Labour Cost

35,189Employee Wages 18,649

5,723 Retirement Benefits 1,849

5,856 Welfare Benefits 4,351


▒ Unit _ KRW MillionEmployees-Pension Payment

933National Pension 524


▒ Unit _ KRW MillionDonations

36Donations

19


▒ Unit _ KRW MillionGovernment Subsidies Received

51Government Subsidies Received 166


▒ Unit _ mg /ℓQuality of Waste Water (thresheld: 20)

10.952009

11.40

11.052010

12.15

10.20Jun. 2011

14.10

▒ BOD ▒ SS

Fines or Penalties Paid (Dec. 2010)

(to be paid by POSCO PLANTEC)

Item Authority Amount (KRW Million)

Penalties Paid for Violating Subcontracting Fair Trade Rules

Fair Trade Commission

40

52 53POSCO PLANTEC SUSTAINABILITY REPORT 2010 APPENDIX

THIRD-PARTY ASSURANCE STATEMENT

Introduction

Korean Standards Association ("KSA") received a request for the

independent assurance engagement of the 2010 Sustainability Report

(“the report”) from POSCO PLANTEC. Therefore, KSA reviewed

data, performance results and evidence and feasibility of the relevant

systems to offer an independent third-party opinion. POSCO PLANTEC

is responsible for collecting, analyzing and organizing the information

necessary to generate the report as well as all the claims made therein.

Independence

KSA is independent and autonomous from any and all influences of

POSCO PLANTEC and its stakeholders, offering nothing more than third-

party assurance on the report.

Standards and Credibility

KSA conducted the assurance by applying the AA100AS 2008 assurance

standards (AA1000 AS) and the ISO 26000 and GRI G3.1 guidelines.

The principles of inclusiveness, materiality and responsiveness as the

principles in the AA1000AS 2008 assurance standard were used to

assess the report. The reliability of the information on the report of

POSCO PLANTEC was verified with a moderate level of assurance.

Assurance Types and Scope

KSA conducted assurance for Type 2 according to the AA1000 assurance

standards (AA1000 AS). Type 2 assurance implies that reliability and

accuracy of the information for sustainability performance embedded in

the report were evaluated according to the report responsibility principles

of the AA1000 assurance standards (AA1000 AS).

The assurance scope is limited to the 2010 POSCO PLANTEC

Sustainability Report and on-site check of its head office between January

1, 2010 to June 30, 2011.

Methodology

KSA used the following methods to collect information, data and evidence

on the scope of the assurance and conducted assurance.

• review on sustainability issues that may affect POSCO PLANTEC and attract stakeholders' interest

• review on the process that determines the material issues contained in the report

To the Management and Stakeholders of POSCO PLANTEC

• examination of the performance data collection system and reporting process in each field

• interview of the staff in charge of sustainability management

• investigation of sustainability data drawing-up process and system by visiting the head office

• review of internal documents and basic data that can back up the key assertions of the report

• scrutiny of consistency of the financial information contained in the report and audit report

Findings & Opinion

KSA reviewed the draft report and presented opinions on it, and the report

was revised as necessary. POSCO PLANTEC is deemed to have presented

sustainability management activities without major errors or biases in the

report, based on our assurance.

• Inclusiveness

Is stakeholder engagement guaranteed in the process of developing and

adopting strategic responses to sustainability?

KSA believes that POSCO PLANTEC operates adequate process and

channels to guarantee the stakeholder engagement. In particular, POSCO

PLANTEC actively carries out communication activities by operating the

Junior Board and Challenge Board, dialogue with the CEO, publications

and seminars with partners.

• Materiality

Does the report contain material issues affecting POSCO PLANTEC and

its stakeholders?

KSA believes that POSCO PLANTEC did not omit or exclude critical

information to stakeholders. It was identified that key issues were devised

through the materiality test process that identifies sustainability issues.

This was conducted through media analysis, industry peer analysis, CSR

level diagnosis and stakeholder research.

• Responsiveness

Is POSCO PLANTEC responding appropriately to stakeholder issues?

KSA believes that POSCO PLANTEC reflects critical sustainable

management issues to its organizational measures and activities.

Opinion and Recommendation for Improvement

POSCO PLANTEC is growing into a world-leading engineering company

under the vision to become a 'Great Partner in Plant World.’ POSCO

PLANTEC adopted sustainable management that creates social and

environmental value to achieve sustainable growth and become a beloved

enterprise. In particular, POSCO PLANTEC aimed to bring in global

standards to the staff's awareness and working style by applying the ISO

26000 standard as the international standard on social responsibility to

management activities. To this end, POSCO PLANTEC has carried out

activities to enhance competencies in social responsibility by forming a

task force for the ISO 26000 in May 2011 and published the Sustainability

Report. It is recommended that POSCO PLANTEC could continue to

strengthen its sustainable management foundation by establishing

specific action plans and evaluation systems.

• Ethics Management

POSCO PLANTEC aims to achieve its Vision 2020, implementing the

'Guideline to Comply with the Foreign Anti-corruption Prevention Act'

as a POSCO family group member starting from 2011 in a bid to grow as

a world-leading engineering company. POSCO PLANTEC also complies

with global business ethical standards to be observed by all staff including

overseas offices. It is recommended that POSCO PLANTEC could devise

its own ethics management-related risk scenario and policies to support

fair operating practices of partners (training on social responsibilities and

monitoring systems).

• Labour-Management Culture

POSCO PLANTEC implements gender equality-based recruitment and

compensation schemes. It is recommended that through welfare benefit

programs including child-care and retirement insurances befitting the age

and demand of staff as well as enhanced diversity in the organizing unit,

the currently measured happiness index continue to improve.

• Community Involvement and Development

POSCO PLANTEC documented a need for social contribution and

implementation plans by establishing a master plan for social contribution

activities. It is recommended that POSCO PLANTEC could develop highly

feasible social contribution programs that could contribute to the local

economy and culture on project sites at home and abroad, while reflecting

the features of the EPC projects that POSCO PLANTEC conducts.

• Green Growth

POSCO PLANTEC is evolving as a world-leading engineering company

by engaging in green energy projects including overseas PV power

generation facilities and wind power as new green growth projects. It

is recommended that POSCO PLANTEC could complement its action

measures more efficiently by integrating environmental safety and health

management strategies and performance assessment systems with its

sustainable management strategies.

• Climate Change Response

POSCO PLANTEC carried out the Green Start campaign to respond to

climate change according to the environmental management guideline.

POSCO PLANTEC is recommended to conduct enterprise-wide energy-

saving activities through inventory-based energy target management and

CO2 emission measurement and reduction target setting. In particular, it is

desirable that POSCO PLANTEC could set and implement CO2 emission

targets and reduction target scenarios by setting mid-and long-term goals

for climate change response. As for the energy Intensity indicators, the

standardized unit is recommended for usage.

GRI Report

POSCO PLANTEC's sustainability report contains in whole or in part the

GRI indices described in the appendix (GRI Index).

October 2011

Kim Chang-ryong

KSA Chairman & CEO

KSA is a special corporation established under the Korea Industrial

Standardization Act in 1962. KSA is a knowledge service agency that

disseminates industrial standardization, quality management, sustainability

management, and KS/ISO certification to companies. As Korea's ISO

26000 administrative agency, certified GRI training partner, AA1000

assurance provider, Korean Sustainability Index (KSI) operating agency, UN

CDM operating body, and greenhouse gas and energy target management

verification body, KSA contributes to our society's sustainable development.


ISO 26000 COMPLIANCE PERFORMANCEISO 26000 PERFORMANCE REPORT

POSCO PLANTEC pursues global standards in fulfilling social responsibilities. In-depth analysis of its corporate management activities was conducted based on ISO 26000, and ways to move forward for higher sustainability were reviewed.

The assessment was made using the Tool for Social Responsibility Promotion

Framework developed based on ISO 26000 led by the Ministry of Knowledge

Economy. The assessment methods include document assessment (ISO Manual,

Audit Report, etc.) and field assessment (staff interviews).

ISO 26000 Performance Assessment Results

POSCO PLANTEC’s ISO 26000 performances were assessed using Korean Standards

Association’s Assessment Tool for Social Responsibility Promotion Framework. The

results revealed higher scores in the performance sector than in the process sector. It

was assessed that in the process sector, improvement is needed in the awareness of

social responsibilities, analysis of key issues and points, setting priorities and action

plants and executing them compared to global leaders. In the performance sector,

improvement is required in that big differences in points occurred in governance, human

rights, and environment and consumer issues while the differences were small in the

labour sector. Fair operation practices showed similar levels with global players’.

Outline

• The management understands the importance of sustainable management and

needs to share it among all staff.

• Stakeholders’ participation procedure takes place partially in some departments alone.

• EPC-related social responsibility issues must be devised in conjunction with key

issues of ISO 26000.

• Due diligence standards must be in place for overseas business sites amid the

expansion of the global business.

• Mid-and long-term goals and roadmaps for sustainable management must be in place.

• Stakeholder communication in general management activities including

communication with customers takes place.

• The assurance procedure for overall sustainable management activities has not been

established yet.

• Activities to improve some sustainable management activities including fulfilling a

shared growth-related agreement took place.

Process Assessment

• Governance: Requires the expansion of outside directors and diversity of board members

• Human Rights: Systems to conduct due diligence, identify risks to human rights and avoid

collusion must be in place.

• Labour Practices: Rational labour-management relations are maintained due to POSCO

PLANTEC’s traditions as a former public enterprise and the professional entrepreneur scheme.

POSCO PLANTEC focuses on developing talents through MBO and the Book Academy.

• Environment: Activities must expand further as to make eco-friendly design and support

environmental management for partners

• Fair Operation Practices: As a family group of POSCO, POSCO PLANTEC is committed to execute

the Guideline under the Foreign Corrupt Practices Act (FCPA) and comply with legal procedures

• Consumer Issues: POSCO PLANTEC’s fair marketing activities are excellent, but needs to make

efforts in consumer heal and safety protection and issues on sustainable consumption.

• Community: POSCO PLANTEC’s mandatory volunteering hours for staff (36 hours per

head) is high, and has partnership with Pohang Research Institute of Industrial Science

and Technology. However, it needs to strengthen programs to develop and apply

expertise, functions and technologies of the community.

Performance Assessment (expressed in overall performance on 7 core subjects)

Outline of the Analysis Framework (8 processes and 7 key issues)

Awareness of Social Responsibilities

Reviewing the status quo based on the entrepreneur’s will

Identification and Participation of Stakeholders

Reviewing stakeholder interest and requirements and establishing their

participation strategies

Analysis of Key IssuesReviewing key issues and listing

them through analysis of internal competencies

ExecutionExecuting strategies, visions, goals and action plans and regularly monitoring

social responsibility performances

CommunicationCommunicating with stakeholders by

writing a performance report

AssuranceConducting activities and reporting

them to raise the reliability of performances

ImprovementRegularly reviewing the performance

for sustained improvement

Establishing Priorities and Action Strategies

Establishing priorities, goals and action plans of key issues to be improved and managed,

considering governance competencies

Corporate GovernanceRespecting the social responsibility

principles and integrating it to the existing systems,

policies and practices

Human RightsRespecting, protecting and

implementing the human rights within the enterprise and its scope

of influence

Labour PracticesPolicies and practices that influence the working environment within the

enterprise and for partners

Fair Operation PracticesPaying attention to ethical

behaviors of inter-corporate transactions

Consumer IssuesProtecting consumer rights including

consumer education, fair and transparent fair marketing information

and contracts, and promotion of sustainable consumption

Participation and Development of Community

Recognizing and protecting the community rights and striving to maximize its resources and

opportunities

EnvironmentConsidering the meanings of the decision-making and activities

of the enterprise and approaching it holistically

Consolidation of Social Responsibilities throughout the Enterprise

Contributing to Sustainable Development

Key Issues Categories Major Activities Page

6.2Organizational Governance

6.2.2 Principles and considerations • Disclosing CSR strategies of POSCO PLANTEC• Operating the sustainable management organizing unit• Considering CSR in decision-making process of the board of directors

161516

6.3Human rights

6.3.3 Due diligence • Implementing ‘Compliance Guideline for the Foreign Anti-corruption Prevention Act’ • Due diligence standard setting for business sites currently under review

18

6.3.4 Human rights risk situation • Human rights violation risks such as political instability and poverty could worsen, and situations requiring particular caution did not occur

19

6.3.5 Avoidance of complicity • Direct or silent collusion not found• Transacting with partners that comply with the Labour Standard Act

19

6.3.6 Resolving grievances • Unfolding various Ombudsman activities in conjunction with the Labour-Management Council, including Happy Call and consultation programs

29

6.3.7 Discrimination and vulnerable groups • Increasing the ratio of new female recruits• Operating a fair personnel system for all staff• Selecting female members for the Labour-Management Council

28-29

6.3.8 Civil and political rights • Adopting a strategic initiative titled ‘Heaven-like Workplace’ under the core value of happiness 14

6.3.9 Economic, social and cultural rights • Initiating activities to support the economic, social and cultural rights for the community members 32-33

6.3.10 Fundamental principles and rights at work • Supporting the UN Human Rights Declaration and International Labour Organization (ILO)’s Regulations 19

6.4Labour practices

6.4.3 Employment and employment relations • Complying with duties imposed by the Labour Act• Guaranteeing equal opportunities for all staff • Protecting employees’ individual data and privacy

26-29

25

6.4.4 Conditions of work and social protection • Providing decent work conditions for the welfare of staff and their family 26-29

6.4.5 Social dialogue • Labour-management communication 28-29

6.4.6 Health and safety at work • Declaring ‘Zero Safety Accident’ to respect human beings 30-31

6.4.7 Human development and training in workplace • Providing equal training opportunities to foster creative knowledge workers 40-41

6.5The environment

6.5.3 Prevention of pollution • Conducting projects to prevent air pollution and water quality pollution 45

6.5.4 Sustainable resource use • Initiating a project to develop eco-friendly technologies and a new project for green growth 38-39

6.5.5 Climate change mitigation and adaptation • Initiating a project on global environmental management and PVs 48-49

6.5.6 Protection of the environment, biodiversity and restoration of natural habitats

• Continuously carrying out clean-up activities for habitats in Unjae Mountain in Pohang under the ‘One Company One Mountain Cleanup Campaign’

32, 47

6.6Fair operating practices

6.6.3 Anti-corruption • Operating systems for codes of ethics and reporting 18-19

6.6.4 Responsible political involvement • Not engaged in political support and lobbying and considering policy participation in industrial development 17

6.6.5 Fair competition • Awarded with commendations for complying with the Fair Transaction Act and fulfilling the fair transaction agreement • Eradicating unfair competitions such as price collusion

17

6.6.6 Promoting social responsibility in the value chain • Supporting partners for 16 sectors including Technical Support for Shared Growth and 16 categories 22-23

6.6.7 Respect for property rights • Not violating property rights such as misuse of the exclusive position and violation of copyright, while complying with the Fair Transaction Act

17

6.7Consumer issues

6.7.3 Fair marketing • Complying with fair contract practices 17

6.7.4 Protecting consumers’ health and safety • Strengthening safe audit activities as is the case in the engineering industry 30

6.7.5 Sustainable consumption • Carrying out policies to purchase eco-friendly products to contribute to sustainable development 23

6.7.6 Consumer service, support, and complaint and dispute resolution

• Conducting activities for customer value creation by maintaining projects and conducting maintenance and repair

24-25

6.7.7 Consumer data protection and privacy • Specifying plans to respond to the Personal Information Protection Act and complying with the ISO 27001 information protection standards

25

6.7.8 Access to essential services • Giving out 8,178 pieces of clothes to local residents in Timor-Leste 33

6.7.9 Education and awareness • Conducting projects befitting demands and criteria of contractors as is the case in the engineering industry, and conducting training to provide information

25

6.8Community involvement and development

6.8.3 Community involvement • Consulting with community groups by taking part in community association activities as well as becoming a member there

60

6.8.4 Education and culture • Offering ‘POSCO PLANTEC Scholarship’ to support elementary, middle and high school students in Pohang 33

6.8.5 Employment creation and skills development • Creating jobs to secure global social infrastructure 33

6.8.6 Technology development and access • Supporting POSTECH that conducts a project to foster IT talents 33

6.8.7 Wealth and income creation • The purchasing ratio of local suppliers was high, and a program to strengthen competitiveness of partners was conducted 23

6.8.8 Health • Conducting a campaign to donate blood and prevent the new influenza virus 32

6.8.9 Social investment • Conducting social contribution activities in each sector such as education, culture, volunteering and job creation 32-33

POSCO PLANTEC implements the expectations on the 7 core subjects in ISO 26000 befitting its management circumstances.It plans to bolster its social responsibility integration process encompassing the stakeholder participation and strengthen it on end.

October 2011

Kim Chang-ryong

KSA Chairman & CEO


Profile Disclosure Fulfilled Page Note

Economic 32

EC1Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

● 51

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change. ● 38 - 39 / 46 - 49

EC3 Coverage of the organization's defined benefit plan obligations. ● 51

EC4 Significant financial assistance received from government. ● 51

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. ● 28

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. ● 23

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. ⋄ - Relevance is low

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. ● 32 - 33

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. ◐ 32 - 33, 51

Environmental 42

EN1 Materials used by weight or volume. ● 47

EN2 Percentage of materials used that are recycled input materials. ◦ - Relevance is low

EN3 Direct energy consumption by primary energy source. ● 46

EN4 Indirect energy consumption by primary source. ● 46

EN5 Energy saved due to conservation and efficiency improvements. ● 46

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. ● 48 - 49

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. ● 48 - 49

EN8 Total water withdrawal by source. ◐ 46

EN9 Water sources significantly affected by withdrawal of water. ● -

EN10 Percentage and total volume of water recycled and reused. ◦ - Relevance is low

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. ⋄ -

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. ⋄ -

EN13 Habitats protected or restored. ● 47

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. ◐ 47

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. ⋄ -

EN16 Total direct and indirect greenhouse gas emissions by weight. ● 47

EN17 Other relevant indirect greenhouse gas emissions by weight. ◐ 47

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. ● 48 - 49

EN19 Emissions of ozone-depleting substances by weight. ⋄ -

EN20 NOx, SOx, and other significant air emissions by type and weight. ⋄ -

EN21 Total water discharge by quality and destination. ●

EN22 Total weight of waste by type and disposal method. ● 47

EN23 Total number and volume of significant spills. ⋄ -

EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

⋄ -

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. ◦ - Relevance is low

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. ◦ - Relevance is low

EN27 Percentage of products sold and their packaging materials that are reclaimed by category. ⋄ -

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. ⋄ -

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. ◐ 44

EN30 Total environmental protection expenditures and investments by type. ◦Integrated management is to be introduced

Social: Labor Practices and Decent Work 28

LA1 Total workforce by employment type, employment contract, and region, broken down by gender. ● 26

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. ● 26

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. ⋄ -

LA4 Percentage of employees covered by collective bargaining agreements. ● 28

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. ● 28

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. ● 29

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. ● 31

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. ● 30-31

LA9 Health and safety topics covered in formal agreements with trade unions. ● 29

LA10 Average hours of training per year per employee by gender, and by employee category. ● 40-41

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. ● 29

LA12 Percentage of employees receiving regular performance and career development reviews, by gender. ● 28

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. ● 16

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. ● 28

LA15 Return to work and retention rates after parental leave, by gender. ● 29

Profile Disclosure Fulfilled Page Note

Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization. ● 2 - 3

1.2 Description of key impacts, risks, and opportunities. ● 2 - 3

Organizational Profile

2.1 Name of the organization. ● 6

2.2 Primary brands, products, and/or services. ● 7 - 8

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. ● 6

2.4 Location of organization's headquarters. ● 6

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. ● 7

2.6 Nature of ownership and legal form. ● 16

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). ● 7

2.8 Scale of the reporting organization. ● 6

2.9 Significant changes during the reporting period regarding size, structure, or ownership. ● 6, 16

2.10 Awards received in the reporting period. ● 60

Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided. ● About this report

3.2 Date of most recent previous report (if any). ● About this report

3.3 Reporting cycle (annual, biennial, etc.) ● About this report

3.4 Contact point for questions regarding the report or its contents. ● About this report

3.5 Process for defining report content. ● About this report

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. ● About this report

3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). ● About this report

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. ● About this report

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. ● About this report

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods). ⋄ - First report

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. ⋄ - First report

3.12 Table identifying the location of the Standard Disclosures in the report. ● 55 - 57

3.13 Policy and current practice with regard to seeking external assurance for the report. ● 52 - 53

Governance, Commitments, and Engagement

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. ● 16

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. ● 16

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. ● 16

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. ● 16

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). ● 16

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. ● 16

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. ● 16

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. ● 16

4.9Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

● 16

4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. ● 16

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. ● 16

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. ◐ 19, 54

4.13Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

● 60

4.14 List of stakeholder groups engaged by the organization. ● 11

4.15 Basis for identification and selection of stakeholders with whom to engage. ● 10

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. ● 9 - 11

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. ● 11

● Reported ◦ Not reported ⋄ N/A ◐ Partially reported

GRI G3.1 INDEX

58POSCO PLANTEC SUSTAINABILITY REPORT 2010 APPENDIX59

Dec. 2010 Started the construction of photovoltaic power plant in Italy (6.5MW capacity)

Oct. 2010 Started the construction of machining and manufacturing shop in the Yeongil Bay Hinterland Complex (66,116m2)

Oct. 2010 Launched TiKhan as MHS(Material Handling System) brand

Feb. 2010 Acquired a general construction license

Jan. 2010 Renamed POSCO PLANTEC (via the integration of POSCO Machinery & Engineering Co., Ltd. and POSCO Machinery Co., Ltd.)

Sep. 2009 Took over the facilities of POSCO Machining and Maintenance Plant

Aug.-Sep. 2008 Initiated the commercial operations of photovoltaic power plants in Goam (1.6MW capacity), Deokam and Yongbang (1.9MW capacity)

Jun. 2008 Delivered the Phase 2 BHS (Baggage Handling System) to Incheon International Airport

Jun. 2008 Started the construction of 1MW-capacity rooftop photovoltaic power generation facilities for the first time in Korea (Pohang Steel Mill’s thick plate warehouse)

Aug. 2006 Won the coal handling facility project for the Xingda Thermoelectric Power Plant in Taiwan

May 2006 Selected as a new and renewable energy company specialized in the five areas of fuel cell, photovoltaics, wind power, thermal power and bio by the Ministry of Commerce, Industry and Energy

Jun. 2005 Delivered the BHS (Baggage Handling System) to Yeosu Airport

Jul. 2004 Won the contract for floodgate construction at Bakun Hydroelectric Power Plant in Malaysia

Apr. 2001 Won the contract to build the BHS for Gimhae International Airport

Mar. 2001 Won the contract to build the Phase 1 BHS for Incheon International Airport

Jan. 1996 Obtained the ISO 9001 certificate for conveyer systems Apr. 1994 Renamed POSCO Machinery & Engineering Co., Ltd.

Apr. 1994 Renamed POSCO Machinery & Engineering Co., Ltd.

Aug. 1993 Took over Dongyang Corporation and started production of rollers and industrial machines

May 1991 Re-founded Iron Making & Service Co., Ltd. (Transferred the construction and steel structure business to POSCO E&C)

Jun. 1987 Started business in the general construction industry

Apr. 1982 Founded Iron Making & Service Co., Ltd.

COMPANY HISTORY & AWARDSProfile Disclosure Fulfilled Page Note

Social: Human Rights 18

HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. ◦ - Under planning

HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken. ◐ 19

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. ◐ 18

HR4 Total number of incidents of discrimination and corrective actions taken. ◦ - No related case

HR5Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

● 28 - 29

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. ● 19

HR7Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

● 19

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations. ◐ 18

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. ⋄ -

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. ◦ - Under planning

HR11 "Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms." ⋄ - No related case

Social: Society 20

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs. ◐ 32 - 33

SO2 Percentage and total number of business units analyzed for risks related to corruption. ◐ 18 - 19

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures. ◐ 18

SO4 Actions taken in response to incidents of corruption. ● 19

SO5 Public policy positions and participation in public policy development and lobbying. ● 17

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. ● 17

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. ● 17

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. ● 51

SO9 Operations with significant potential or actual negative impacts on local communities. ⋄ -

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. ⋄ -

Social: Product Responsibility 34

PR1Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

● 24 - 25

PR2Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

⋄ -

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. ◦ - Disclosed on the website

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. ⋄ -

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. ● 23, 25

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. ◦ -Complying with laws and regulations

PR7Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

⋄ -

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. ◐ 25

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. ⋄ - No related case

POSCO PLANTEC wrote this report according to G3.1, the international standard for sustainability report and declares ‘A+’ for the level thereof.

Korean Standards Association independently verified POSCO PLANTEC’s 2010 Sustainability Report and confirms that the GRI G3.1 level is ‘A+.’

GRI G3.1 Application Level Declaration

Based on the 2002 Guideline

C C+ B B+ A A+

MandatorySelf-Declaration

OptionalThird-Party Identification

External Assurance Report



Company History


READER’S FEEDBACK SURVEY

This report presents POSCO PLANTEC’s economic, environmental and social achievements transparently and aims to incorporate

stakeholders’ feedback into our future business operations. We welcome your valuable opinions that will help us grow into a sustainable

company admired by our stakeholders.

� POSCO PLANTEC Employee � Shareholder � Financial Institution � Ordering Client � Partner � NGO

� Local People � Academia � Government � Media � Research Institute � Others ( )

� Stakeholder Communication �Establishment of Sustainability Management Strategy �Corporate Governance

�Fair Trade � Ethics Management �Shared Growth

�Creation of Customer Values �Employees �Labour

�Health and Safety �Community Involvement and Development �Technology Innovation

�New Growth Business �Talent Development �Global Environmental Management

�Environmental Pollution Prevention Project �Climate Change Response �PV Project

� Stakeholder Communication � Organizational Governance � Human Rights � Labour Practices

� Environment � Fair Operating Practices � Consumer Issues � Community Involvement and Development

1. Which of the following stakeholder groups do you belong to?

2. Which of the following areas are you most interested in? (Multiple choices allowed)

3. Please rate the completeness and usefulness of the information presented in this report on the following items.

5. How much are you satisfied with this report?

6. Please feel free to describe anything that need to be improved about this report.

7. Please feel free to tell us anything that you expect to see about POSCO PLANTEC’s business activities.

Recipient _ POSCO PLANTEC ISO26000 Task Force Team / Phone: +82-(0)54-279-7451 / Fax: +82-(0)54-279-7999 / E-mail: [email protected]

Thank you for your cooperation.

4. What do you think is the top priority we should pursue to grow into a multinational company? Please rate the importance of the items listed below.

Very Satisfied Satisfied Neither Satisfied Nor Dissatisfied Not satisfied Very Dissatisfied

CEO Message � � � � �

Sustainability Achievements � � � � �

Stakeholder Communication � � � � �

Sustainability Management System � � � � �

Open Management � � � � �

Creative Management � � � � �

Environmental Management � � � � �

Very Satisfied Satisfied Neither Satisfied Nor Dissatisfied Not satisfied Very Dissatisfied

� � � � �

Korea Chamber of Commerce & Industry Korea Fire Construction Association Korea Testing & Research Institute

International Contractors Association of Korea Korea Electric Engineers Association East Local of Kyongbuk Safety Manager’s Association

Korea Engineering & Consulting Association Korean Standards Association Korea Environmental Preservation Association Daegu North Gyeongsang Province

Korea International Trade Association Korea Productivity Center East Local of Kyongbuk Employer’s Association

Korea Importers Association Institute of Internal Auditors Korea Pohang Development Council

Korea Specialty Contractors Association Korea Institute of Metals and Materials Pohang Eco-friendly Industrial Complex Council

Korea Mech.Const.Contractors Association Korea Industrial Safety Association Pohang Iron & Steel Industrial Complex Administration Corporation

Korea Electrical Contractors Association Korean Nurses Association Gwangyang Industrial Complex Tenant Company Council

Membership

Awards

• Won the Tin Tower Order of Industrial Service Merit on the Workers' Day

• Received the $10 Million Export Tower on the 45th Trade Day

• Selected as a company with excellent labour-management culture (Minister of Labour)

2008 • Received the Presidential Commendation in the occupational accident prevention category at the 26th Occupational Safety and Health Conference

1993

• Received the Prime Minister’s Commendation in the occupational accident prevention category at the 40th Occupational Safety and Health Conference

• Named the best company by the Incheon International Airport Corporation

2007 • Won 1 silver medal and 1 bronze medal at the National Skill Contest1987

• Received the Tin Tower Order of Industrial Service Merit on the 40th Taxpayers’ Day2006

• Received the Golden Tower Award (presidential award) on the 23rd Savings Day1986

• Won the Presidential Order of Industrial Service Merit in recognition of the completion of the Phase 1 Baggage Handling System (BHS) of Incheon International Airport

2001 • Won the Grand Prize in the Quality Management Circle Presentation Contest in Daegu, North Gyeongsang Province

1985

63 APPENDIX

Recycled papers and soy ink, certified by Forest Stewardship Council (FSC),were used to print this report. / Designed by d.forever

Documents

POSCO PLANTEC S POSCO PLANTEC Technology Sustainability