International ESG Association (IESGA) collaborates with POSCO International to transform palm plantations into “carbon assets”

As global industries accelerate efforts to mitigate greenhouse gas emissions, soil is gaining attention as more than a natural resource. When managed scientifically, it can act as a long-term carbon reservoir and support practical climate action.

To capitalize on this potential, Pohang Iron and Steel Company (POSCO) International and the International Environmental, Social, and Governance (ESG) Association (IESGA) signed a memorandum of understanding (MOU) on June 23, 2026 at the POSCO Center in Seoul, Korea, to Conduct research on “Soil as an Asset” and evaluate the carbon-reduction potential of biochar in large-scale palm plantations.

The ceremony was attended by President and CEO Kye-In Lee of POSCO International, and other senior executives, along with Professor Yong Sik Ok, President of the IESGA, and Director of Korea Biochar Research Center, Korea University, together with Professor Jay Hyuk Rhee, President of the IESGA, and President of Korea University ESG Institute.

The joint research project focuses on palm plantations operated by PT Prime Agri Resources Tbk (PT.PAR), an Indonesian palm oil company that POSCO International acquired last year. The project aims to establish a “Carbon Mapping” system that quantifies carbon storage capacity and greenhouse gas emission characteristics according to soil properties. Researchers will also evaluate the use of biochar, a carbon-rich material produced by pyrolyzing biomass such as agricultural by-products in an oxygen-limited environment.

Biochar has emerged as a highly promising technology in the global carbon dioxide removal market because of its ability to store carbon in soil for centuries. For this project, the two partner organizations will conduct soil analyses to build carbon maps, identify areas best suited for biochar application, and advance the demonstration project. They will then assess carbon-reduction effects, expand the scope of application, and examine possibilities for connecting the work to the carbon-credit business.

This initiative represents a field demonstration of the application of biochar-based carbon-reduction technology, which is still in its early stages in Korea, to a real large-scale palm plantation. This research can change how palm plantations are perceived. Plantation management has historically placed a strong emphasis on profitability and crop yields. By adding carbon storage and soil quality assessments, this study broadens that perspective and establishes the groundwork for managing plantations as "carbon assets."

The project also aligns with the POSCO Group’s broader commitment to enhancing environmental competitiveness. While the Group is developing low-carbon steelmaking technologies such as hydrogen reduction steelmaking, POSCO International is supporting carbon-reduction goals through hydrogen co-firing power generation, renewable-energy expansion, and biomass-utilization projects. This new initiative extends those efforts into the agricultural sector.

The project will be led by IESGA under the joint leadership of Prof. Ok and Prof. Rhee, whose complementary expertise bridges environmental science, biochar-based carbon sequestration, ESG management, and sustainable business strategy. Prof. Ok mentions, “The essence of future ESG management lies not in managing environmental risk, but in creating nature-based value. Soil is one of the largest carbon reservoirs on Earth, and depending on how it is managed, it can become either a source of emissions or a carbon sink.” He adds, “This project is highly meaningful as a demonstration study that scientifically measures and manages soil carbon, and by harnessing biochar, a carbon-negative technology, transforms soil from something merely to be managed into an asset.”

Prof. Rhee also highlights, "This collaboration serves as a benchmark case where cutting-edge academic research on soil carbon and biochar is validated on a massive commercial scale and successfully translated into practical, high-impact industrial solutions. We are fully committed to ensuring that this innovative soil-carbon asset development takes root as a robust, enduring global business mechanism for driving tangible climate action."

Mr. Oh Ji-Heon, Board Director and Attorney at ONE Law Partners, adds, “This collaboration shows how ESG can expand from a disclosure requirement into a practical solution, integrating legal and business frameworks to deliver measurable climate value through soil-carbon asset development.”

Together, POSCO International and the IESGA aim to advance soil-carbon asset development and support sustainable ESG value creation in agriculture.

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About the International ESG Association (IESGA)
Founded on May 4, 2021, by Prof. Yong Sik Ok and Prof. Jay Hyuk Rhee, the International ESG Association (IESGA) is South Korea’s first global academic network dedicated to advancing corporate sustainability. As of June 2022, IESGA has connected over 400 institutions across 48 countries to establish a foundation for improving collective intelligence about the present and future of ESG management. Its mission focuses on creating and sharing cutting-edge knowledge, establishing global ESG criteria, hosting academic seminars, and providing specialized consultancy and educational programs. A landmark achievement includes co-hosting South Korea’s first Nature conference in 2021 with LG Energy Solutions, which engaged over 2,000 participants from 97 nations.
More information is available at: https://iesga.org/

About the IESGA Presidents
Professor Yong Sik Ok currently serves as the President of the International ESG Association (IESGA) and the Director of Korea Biochar Research Center, Korea University. Professor Jay Hyuk Rhee serves as the President of the IESGA and the President of Korea University ESG Institute. Together, they represent IESGA’s interdisciplinary leadership across environmental science, ESG management, and sustainable business strategy. In 2022, Prof. Ok was recognized as a Highly Cited Researcher (HCR) in three fields—Environment and Ecology, Engineering, and Biology and Biochemistry. He was also the first Korean scientist to receive HCR recognition in Environment and Ecology, beginning in 2019. In 2025, Prof. Ok was ranked first globally in Environmental Sciences by ScholarGPS. His Google Scholar profile shows an h-index of 197, over 145,492 citations, and 108 highly cited papers. He leads global research and serves as Editor-in-Chief of CleanMat.