IESGA and POSCO International turn palm plantations into carbon assets
The International ESG Association (IESGA) and POSCO International have launched a joint research initiative to transform palm plantations into long-term carbon storage assets using biochar-based carbon reduction technology.
The partnership aims to develop a new “Soil as an Asset” model that measures and increases the carbon storage potential of agricultural land while supporting corporate sustainability and climate action goals.
Under a memorandum of understanding signed on 23 June 2026 in Seoul, IESGA and POSCO International will investigate the potential of biochar applications across large-scale palm plantations operated by Indonesian palm company PT. Prime Agri Resources (PT.PAR).
The research will focus on developing a “Carbon Mapping” system to measure soil carbon storage capacity and greenhouse gas emissions based on different soil characteristics. The project will identify areas where biochar can deliver the greatest carbon reduction benefits and assess opportunities to connect the results with future carbon credit markets.
Biochar, a carbon-rich material produced from organic biomass, has gained increasing attention as a potential climate solution because of its ability to store carbon in soils over long periods while improving soil quality and agricultural productivity.
IESGA researchers will conduct detailed soil analyses, create carbon maps and carry out field demonstrations to evaluate how biochar can support sustainable palm plantation management. The partners aim to expand the technology’s application and establish a scalable model for carbon-negative agriculture.
The initiative represents one of the largest commercial demonstrations of biochar-based carbon reduction technology in a Korean-affiliated palm plantation project. It also aligns with POSCO International’s broader sustainability strategy, which includes renewable energy expansion and biomass utilisation alongside the wider POSCO Group’s efforts to develop lower-carbon industrial technologies.
Professor Yong Sik Ok, President of IESGA and Director of the Korea Biochar Research Center at Korea University, said the project demonstrates how nature-based solutions can create measurable value within ESG strategies.
“The essence of future ESG management lies in creating nature-based value,” he said.
“Soil is one of the largest carbon reservoirs, and depending on management, it can become either a source of emissions or a carbon sink. This project is a significant demonstration study that scientifically measures and manages soil carbon and, by harnessing biochar, transforms soil into an asset.”
Professor Jay Hyuk Rhee, President of IESGA and President of the Korea University ESG Institute, said the collaboration shows how scientific research can be translated into practical business solutions.
“This collaboration serves as a benchmark case where research on soil carbon and biochar is validated on a commercial scale and successfully translated into actionable industrial solutions,” he said.
The project combines expertise across environmental science, sustainable agriculture, carbon sequestration and ESG management, with the aim of creating a repeatable approach for companies seeking measurable emissions reductions.
Oh Ji-Heon, Board Director and Attorney at ONE Law Partners, said the partnership demonstrates how ESG initiatives can move beyond commitments and deliver practical climate solutions through the integration of scientific, legal and commercial frameworks.
As companies worldwide seek new ways to reduce emissions and generate verified carbon value, the IESGA and POSCO International initiative highlights the growing role of soil management and carbon removal technologies in supporting the global transition towards a lower-carbon economy.
