Korea Zinc publishes 2025 sustainability report, pledges continued trust-based management

Korea Zinc announced Tuesday that it has published its "2025 Sustainability Report," documenting key environmental, social and governance activities and achievements from last year. The company has released the report annually since 2021.

This year's report was built on a double materiality assessment that analyzes both environmental and social impacts alongside financial impacts. Through the process, Korea Zinc identified five material issues: safety and health management, climate change response, ethics and compliance management, pollution and hazardous substance management, and resource circulation and waste management.

Compared with the previous report, the company split the former "natural environment impact" issue into two separate categories — pollution and hazardous substance management, and resource circulation and waste management — and added ethics and compliance management as a new material issue. The report also incorporates findings from an analysis of climate-related risks and opportunities, as well as biodiversity content reflecting recommendations from the Taskforce on Nature-related Financial Disclosures.

On the environmental front, the report details Korea Zinc's efforts toward carbon neutrality. Following a carbon neutrality roadmap established in 2023, the company is targeting net-zero emissions by 2050. Last year, it reduced Scope 1 and Scope 2 greenhouse gas emissions by 15.3 percent compared with the 2019 base year. Korea Zinc also invested in air pollution control facilities and introduced an energy monitoring system to improve energy efficiency.

The report highlights investment in renewable energy and green hydrogen projects. Through its Australian subsidiary Arc Energy, Korea Zinc is developing clean energy businesses including solar power, wind power and battery energy storage systems, investing about 82 billion won ($53 million) in those areas last year.

In resource circulation, the company reported a 5.2 percentage-point improvement in its waste recycling rate last year through process improvements. Korea Zinc also outlined plans to expand its "urban mining" business — recovering valuable metals from electronic waste and other sources — centered on its US subsidiary Pedal Point. The company intends to strengthen its waste recycling value chain through research and development and build a circular economy model that enhances the stability of critical mineral supply chains.

In the social domain, the report emphasizes safety and health management and supply chain sustainability. Korea Zinc invested about 310 billion won in safety, health and facilities last year and plans further investment this year. The company also operates communication channels to gather feedback from employees and partner firms.

On governance, Korea Zinc is focused on strengthening board independence and diversity. Last year, it appointed outside director Hwang Deok-nam as board chair — the first outside director and first woman to hold the position in the company's history. The company also operates an ESG committee under the board and a sustainability management promotion committee as a management advisory body to guide ESG decision-making.

"Korea Zinc believes that the foundation of sustainable growth ultimately lies in trust, and we have worked to strengthen a transparent and accountable management framework," Chairman Choi Yun-beom said. "Going forward, we will strive to become a strategic partner in the global critical mineral supply chain, a resource platform leading the circular economy, and an eco-friendly materials company prepared for the era of carbon neutrality — all through responsible management grounded in solid trust."

Meanwhile, Korea Zinc held its first sustainability management promotion committee meeting of the year on June 10, reviewing key ESG issues including climate disclosure, biodiversity and supply chain management.

Korea Zinc maintains a top-tier rating of 1 across all ESG categories in the "QualityScore" assessment by proxy advisory firm ISS, and has earned an A rating in MSCI's ESG evaluation. It also became the first company in Korea's nonferrous metals industry to be included in S&P Global's Dow Jones Best-in-Class Index for the Asia-Pacific region, and achieved a 100 percent compliance rate on core indicators in its 2025 corporate governance report.