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Palm oil assessments

Established in 1967, South Korean producer POSCO is involved in oil palm cultivation and processing

  • Parent company:
    POSCO Group
  • Landbank (oil palm):
    34,195 hectares
  • Market cap:
    1,923,926,580 USD
  • Thomson Reuters ticker:
    047050.KS
  • Bloomberg ticker:
    047050 KS
  • ISIN:
    KR7047050000
  • RSPO member?
    Yes, the company's subsidiary PT. BIA became a member of the RSPO in July 2018.
  • Website:

Company assessment: POSCO DAEWOO Corporation – November 2018

SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.

Assessment date:

Total: 27.4% 31 / 113
  • Sustainability policy and leadership Sustainability policy and leadership 3.5 / 6 58.3%
    • Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Yes
      1 / 1
      Source

      1. Sustainable palm oil policy or commitment for all its operations?

      PT. BIA the palm oil subsidiary of the company developed its environmental and social policy in 2016

    • No
      0 / 1
      No source

      2. Policy or commitment applies to direct and third-party suppliers?

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company states "In July 2016, PT. BIA established Environmental & Social ("E&S") Committee, which operates directly under the authority of the CEO, for making important decisions on environmental and social aspects and relevant activities"

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

    • Partial
      0.5 / 1
      Source

      5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?

      Parent company POSCO is a member of UNGC

    • n/a
      -
      No source

      6. Verification report on compliance with POIG Charter, if a POIG member?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 1
      No source

      7. Activities with government, NGOs or academic institutions to improve palm oil sustainability?

  • Landbank, maps and traceability Landbank, maps and traceability 4 / 13 30.8%
    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their management areas and provide details on traceability of their products, both to mill and plantation level.

    • Yes
      1 / 1
      Source

      8. Total land area managed/controlled for oil palm (ha)?

      34,195

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      27,000

    • Partial
      0.5 / 1
      Source

      10. Plasma/scheme smallholders planted area (ha)?

      1,500 - The company's subsidiary PT. BIA states it agreed on the first plasma area of 1,500ha in 2016, although it is unclear if this is planted or not

    • No
      0 / 1
      No source

      11. Unplanted (areas designated for future planting) (ha)?

    • Partial
      0.5 / 1
      Source

      12. Conservation set-aside area, including HCV area (ha)?

      5,705 - The company's subsidiary PT. BIA only states that 3,500 ha of wildlife preservation zones and then 2,205 ha of swamps and waterways were removed from the original IUP of 39,900 ha. The company also reports it has set aside and delineated HCV areas, but does not state the size of these areas

    • No
      0 / 1
      No source

      13. Area for infrastructure (ha)?

    • Partial
      0.5 / 1
      Source

      14. Number and names of company owned mills?

      1 - The company's subsidiary PT. BIA has one mill that it planned to complete in Q1 2017. It is unclear if this is now operational, and the mill is not named

    • No
      0 / 1
      No source

      15. Maps or coordinates of company owned mills?

    • n/a
      -
      No source

      16. Number and names of supplier mills?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 1
      No source

      17. Maps of estates/management units?

    • No
      0 / 1
      No source

      18. Maps of scheme/plasma smallholders?

    • n/a
      -
      No source

      19. Time-bound commitment to achieve 100% traceability to mill level?

      This indicator is disabled as it is not applicable to this company.

    • Partial
      0.5 / 1
      Source

      20. Time-bound commitment to achieve 100% traceability to plantation level?

      The company's subsidiary PT. BIA only states it strives to establish a transparent sourcing network with traceability

    • n/a
      -
      No source

      21. Percentage of supply traceable to mill level (above 80%)?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 2
      No source

      22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (above 75%)?

    • n/a
      -
      No source

      23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (above 75%)?

      This indicator is disabled as it is not applicable to this company.

  • Deforestation and biodiversity Deforestation and biodiversity 3.5 / 10 35%
    • Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.

    • No
      0 / 1
      Source

      24. Commitment to zero deforestation?

    • No
      0 / 1
      No source

      25. Deforestation commitment applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      26. Criteria for defining deforestation?

      HCV

    • No
      0 / 1
      No source

      27. Evidence of monitoring deforestation?

    • No
      0 / 1
      No source

      28. Examples of habitat management and/or habitat restoration?

    • No
      0 / 1
      No source

      29. Implementing a landscape-level approach to biodiversity conservation?

    • Yes
      1 / 1
      Source

      30. Commitment to biodiversity conservation?

    • Partial
      0.5 / 1
      Source

      31. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?

      The company's subsidiary PT. BIA only states that it prohibits capturing of rare and endangered species listed under IUCN/CITES during farm work, but does not have a clear commitment to not endanger species

    • Partial
      0.5 / 1
      Source

      32. Commitment to no hunting or only sustainable hunting of species?

      The company's subsidiary PT. BIA only states it prohibits capturing of rare and endangered species during farm work

    • Partial
      0.5 / 1
      Source

      33. Examples of species conservation activities?

      The company's subsidiary PT. BIA only states it consistently monitors rare species

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 1 / 11 9.1%
    • Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.

    • Partial
      0.5 / 1
      Source

      34. Commitment to conduct High Conservation Value (HCV) assessments?

      The company's subsidiary PT. BIA states it protects HCV areas and has carried out HCV assessments, but it is unclear if it commits to HCV assessments for all new planting. As a new member of the RSPO, PT. BIA commits to conduct HCV assessments before all new planting under RSPO NPP

    • No
      0 / 1
      No source

      35. HCV commitment applies to scheme smallholders and independent suppliers?

    • No
      0 / 1
      No source

      36. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

    • No
      0 / 1
      No source

      37. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?

    • No
      0 / 1
      Source

      38. High Conservation Value (HCV) assessments for all estates planted since January 2015?

      The company's subsidiary PT. BIA has submitted two HCV assessment on the HCV Resource Network. However, neither are publicly available as one report was not published as it was unsatisfactory and the second is with assessor at time of assessment. No NPPs could be found for the company

    • No
      0 / 1
      No source

      39. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?

    • No
      0 / 1
      Source

      40. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?

      One HCV assessment of PT. BIA has been deemed unsatisfactory and another is with assessor at time of assessment

    • No
      0 / 1
      No source

      41. Commitment to the High Carbon Stock (HCS) Approach?

    • No
      0 / 1
      No source

      42. High Carbon Stock (HCS) assessments?

    • Partial
      0.5 / 1
      Source

      43. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company's subsidiary PT. BIA states that it has performed environmental impact assessments, and plans to address RSPO criteria including SEIA assessments, but does not clearly state that assessments are carried out prior to all planting. As an RSPO member, PT. BIA also commits to conduct SEIAs under RSPO NPP

    • No
      0 / 1
      Source

      44. Social and environmental impact assessments (SEIAs) undertaken, and associated management and monitoring plans?

      The company's subsidiary PT. BIA states it has performed environmental impact assessments, including AMDAL, and submitted management and monitoring plans, but no documents are publicly available

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 3 / 15 20%
    • Companies should commit to protect peatland and undertake best management practices for soils and peat. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as any fires that occurred in or around their estates, along with plans for managing and monitoring fires.

    • Partial
      0.5 / 1
      Source

      45. Commitment to no planting on peat of any depth?

      The company's subsidiary PT. BIA only states it strives to protect peatlands

    • No
      0 / 1
      No source

      46. Peat commitment applies to scheme smallholders and independent suppliers?

    • No
      0 / 1
      No source

      47. Commitment to best management practices for soils and peat?

    • No
      0 / 1
      No source

      48. Landbank or planted area on peat?

    • Partial
      0.5 / 1
      Source

      49. Evidence of best management practices for soils and peat?

      The company's subsidiary only details best management practices for soils

    • Yes
      1 / 1
      Source

      50. Commitment to zero burning?

    • No
      0 / 1
      No source

      51. Zero burning commitment applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      52. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

      53. Details/number of hotspots/fires in company estates?

    • No
      0 / 1
      No source

      54. Details/number of hotspots/fires within surrounding landscape/smallholders?

    • No
      0 / 1
      Source

      55. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

      The company states it will endeavour to "minimize the discharge of greenhouse gas by improving energy efficiency" and its subsidiary PT. BIA states it is reducing greenhouse gas emissions, but does not have a time-bound commitment to reduce emission intensity

    • No
      0 / 1
      No source

      56. GHG emissions from land use change?

    • No
      0 / 1
      No source

      57. Methodology used to calculate GHG emissions?

    • No
      0 / 1
      Source

      58. Progress towards commitment to reduce GHG emissions intensity?

      The company reported 4,158 tCO2 in 2016, but this was only collected from the Korean headquarters, is not a measure of intensity, and is not given in relation to figures from previous years so progress cannot be assessed

    • No
      0 / 1
      No source

      59. Percentage of mills with methane capture (100%)?

  • Water, chemical and pest management Water, chemical and pest management 1.5 / 12 12.5%
    • Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use and treatment of palm oil mill effluent (POME).

    • No
      0 / 1
      Source

      60. Time-bound commitment to improve water use per tonne of FFB Processed?

      In 2016, the company's subsidiary PT. BIA stated: "When CPO Mill launches operation in 2017, PT. BIA plans to establish a water resource management system that is environmentally reliable by monitoring and managing the volume of water intake and waste water quality emitted from CPO Mill." It does not have a clear commitment to improve water use per tonne of FFB processed

    • No
      0 / 1
      Source

      61. Time-bound commitment to improve water quality (BOD and COD)?

      The company's subsidiary PT. BIA states that it prevents water pollution and protects water quality, but does not have a time-bound commitment to improve water quality

    • No
      0 / 1
      No source

      62. Progress towards commitment on water use?

    • Partial
      0.5 / 1
      Source

      63. Progress towards commitment on water quality (BOD and COD)?

      The company's subsidiary PT. BIA reports BOD and COD figures on water quality, but does not have a clear commitment that it reports progress towards

    • No
      0 / 1
      No source

      64. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

      65. Evidence of treating palm oil mill effluent (POME)?

    • No
      0 / 1
      Source

      66. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company's subsidiary PT. BIA only states that it minimises pollutants, uses and plans to increase use of organic fertiliser use, but does not have a clear commitment to minimise the use of chemicals

    • No
      0 / 1
      No source

      67. No use of paraquat?

    • No
      0 / 1
      No source

      68. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • No
      0 / 1
      No source

      69. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • No
      0 / 1
      No source

      70. Integrated Pest Management (IPM) approach?

    • No
      0 / 1
      No source

      71. Chemical usage per ha or list of chemicals used?

  • Community, land and labour rights Community, land and labour rights 9.5 / 19.5 48.7%
    • Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.

    • Yes
      1 / 1
      Source

      72. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?

    • No
      0 / 1
      No source

      73. Commitment to human rights applies to scheme smallholders and independent suppliers?

    • Partial
      0.5 / 1
      Source

      74. Commitment to respect legal and customary land tenure rights?

      The company's subsidiary PT. BIA only states it protects the rights to property, water and sanitation, and culture of indigenous groups and local communities, and that it respects their human rights to follow the principles of FPIC

    • Partial
      0.5 / 1
      Source

      75. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?

      The company's subsidiary states that it respects the rights of indigenous communities but it does not reference the UN Declaration on Rights of Indigenous Peoples or ILO Indigenous and Tribal Peoples Convention

    • Yes
      1 / 1
      Source

      76. Commitment to free, prior and informed consent (FPIC)?

    • No
      0 / 1
      No source

      77. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

      78. Details of free, prior and informed consent (FPIC) process available?

    • Yes
      1 / 1
      Source

      79. Details of process for addressing land conflicts available?

      The company's subsidiary PT. BIA provides a flowchart of its Resolution Mechanism process

    • No
      0 / 1
      No source

      80. Commitment to mitigate impacts on food security?

    • Yes
      1 / 1
      Source

      81. Commitment to provide essential community services and facilities?

    • No
      0 / 1
      No source

      82. Commitment to respect all workers' rights?

    • Partial
      0.5 / 1
      Source

      83. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company's subsidiary PT. BIA refers to no discrimination, not employing persons under the age of 18, prohibits child labour, prohibits forced labour and guarantees union activities and collective agreement, but does not refer to equal remuneration

    • Yes
      0.5 / 0.5
      Source

      84. Total number of employees?

      825 - The company's subsidiary PT. BIA had 825 full-time employees as of June 2016, excluding 1,500 subcontractors

    • No
      0 / 1
      No source

      85. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      86. Percentage or number of women employees?

      99 (12%) - These figures are dated June 2016

    • Partial
      0.5 / 1
      Source

      87. Commitment to pay minimum wage?

      The company's subsidiary PT. BIA states that it pays the minimum wage in accordance with Indonesian Labour Law, but does not provide evidence of this

    • Yes
      1 / 1
      Source

      88. Commitment to address occupational health and safety?

    • No
      0 / 1
      No source

      89. Time lost due to work-based injuries?

    • No
      0 / 1
      No source

      90. Number of fatalities as a result of work-based accidents?

    • Yes
      1 / 1
      Source

      91. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 0.5 / 13.5 3.7%
    • Companies should become members of credible certification standards and report in accordance with all appropriate categories of membership. The Roundtable on Sustainable Palm Oil (RSPO) requires members registered as growers to submit data relating to certification targets for their estates, scheme smallholders and independent fresh fruit bunch (FFB) suppliers, via an annual communications of progress (ACOP) report.

    • Partial
      0.5 / 1
      Source

      92. Member of the Roundtable on Sustainable Palm Oil (RSPO)?

      The company's subsidiary PT. BIA became a member of the RSPO in July 2018

    • n/a
      -
      No source

      93. Submitted most recent RSPO Annual Communication of Progress (ACOP)?

      This indicator is disabled as it is not applicable to this company.

    • n/a
      -
      No source

      94. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 0.5
      No source

      95. Time-bound plan for achieving 100% RSPO certification of estates within 5 years or achieved 100% RSPO-certification of estates?

    • No
      0 / 0.5
      No source

      96. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders within 5 years or achieved 100% RSPO-certification of scheme/associated smallholders?

    • n/a
      -
      No source

      97. Year expected to achieve 100% RSPO certification of all palm product processing facilities?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 0.5
      No source

      98. RSPO-certified within three years of joining the RSPO or by November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007?

    • No
      0 / 2
      No source

      99. Percentage of mills RSPO-certified (above 75%)?

    • No
      0 / 2
      No source

      100. Percentage of area (ha) RSPO-certified (above 75%)?

    • No
      0 / 2
      No source

      101. Percentage of scheme/associated smallholders (ha) RSPO-certified (above 75%)?

    • No
      0 / 2
      No source

      102. Percentage of FFB supply (tonnes) from independent FFB suppliers that is RSPO-certified (above 75%)?

    • n/a
      -
      No source

      103. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that are RSPO-certified (above 75%)?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 1
      No source

      104. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

    • No
      0 / 1
      Source

      105. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?

      The company's subsidiary PT. BIA reported in 2016 that it had received ISPO farm assessments at the development stage, prior to its mill being operational (then planned for 2017). However it does not report that it has since received certification

    • n/a
      -
      No source

      106. Malaysia Sustainable Palm Oil (MSPO) certified?

      This indicator is disabled as it is not applicable to this company.

    • No
      0 / 1
      No source

      107. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?

  • Smallholders and suppliers Smallholders and suppliers 1 / 7 14.3%
    • Companies should report details of any programmes or schemes to support both schemed and independent smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.

    • Yes
      1 / 1
      Source

      108. Programme to support scheme smallholders?

    • No
      0 / 1
      No source

      109. Number or percentage of scheme smallholders involved in programme?

    • No
      0 / 1
      No source

      110. Programme to support independent smallholders?

    • No
      0 / 1
      No source

      111. Number or percentage of independent smallholders involved in programme?

    • No
      0 / 1
      No source

      112. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

    • No
      0 / 1
      No source

      113. Suspension or exclusion criteria for suppliers?

    • No
      0 / 1
      No source

      114. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

  • Governance and grievances Governance and grievances 3.5 / 6 58.3%
    • Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • Yes
      1 / 1
      Source

      115. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      116. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      117. Own grievance or complaints system?

      The company states it has a grievance system, but does not give further details

    • Yes
      1 / 1
      Source

      118. Grievance or complaints system is accessible to internal and external stakeholders?

      The company states its grievance system is open to employees and local residents

    • No
      0 / 2
      No source

      119. Details of grievances disclosed?

Media monitor: POSCO DAEWOO Corporation

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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Research protocols: POSCO DAEWOO Corporation

Research protocols guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full palm oil indicator framework contains 119 indicators across 10 categories, aligned with corporate reporting initiatives.

SPOTT is a ZSL initiative.
Zoological Society of London (ZSL)