Why Investors Care? Exploring Climate Risk and Its Potential Financial Impacts with POSCO Holdings  

During the past decade, the global financial industry has come to understand that climate is not exclusively a subset of ESG, but an issue with impacts that will affect financial stability and resilience.  

Understanding the responsible approach is to manage the emissions from their portfolios, leading global institutional investors have enhanced engagement with high-emitting companies, intending to align their financed emissions with a 1.5°C trajectory. 

Between 2022 and 2023, some foreign institutional investors excluded POSCO Holdings for its negative impact on the climate and the environment. For the group, climate-related transition risk driven by tighter regulations in other jurisdictions – including the CBAM and the SFDR in the EU - is becoming a reality. 

To make POSCO Holdings attractive and restore market confidence, the new CEO and board of directors are recommended to ▲demonstrate leadership commitment and risk governance, ▲raise ambition with certified interim targets, and ▲understand the expectations of financial institutions.  

For more information, please download the brief below.