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SUSTAINABILITY REPORT 2019 METINVEST OCCUPATIONAL HEALTH AND SAFETY OUR APPROACH

GRI 103-2 Metinvest is committed to providing a safe work environment for its employees and contractors 1. We apply a proactive approach to ensure that every individual who enters the Group’s facilities is engaged in health and safety and committed to the . To live up to our zero injuries commitment, we focus on cultivating positive behavioural changes, which includes encouraging every employee and contractor to take personal responsibility for their health and safety and improve their individual safety performance.

Metinvest’s Policy and Principles in the Field of Health, Safety and the VISION ZERO Environment defines our long-term With human life as our overriding priorities for continuous improvement priority, we continue to focus on in this area. The Group has 15 corporate delivering our ultimate health health and safety standards based on and safety goal of achieving international best practices that lay out zero incidents. our comprehensive approach to the field. In 2019, Metinvest became the Our responsible health and safety first organisation in Ukraine to practices cascade down from the receive Vision Zero certification highest level of the organisation, from the International Social beginning with the Supervisory Board’s Security Association (ISSA). The Health, Safety and Environmental Vision Zero approach is based Committee, which provides effective on seven “golden rules” aimed at oversight to ensure compliance with the developing a sustainable safety relevant requirements and practicable culture and creating a zero incident global standards. working environment.

The Sustainable Development and People Management Directorate, which took over the responsibilities of the Directorate for Occupational Safety and Environment at the Executive Team level, coordinates the Group’s work in this area, while the Occupational Health and Safety departments of each asset are responsible for these matters at the entity level.

1 For the purposes of the Report, the term “contractors” refers to both contractors and subcontractors. 87 INTRODUCTION

GRI 103-3 In 2019, Metinvest developed a new managers of the Group. In 2019, we working at height and work that requires ABOUT THE REPORT five-year roadmap for further improving introduced a supplemental incentive isolating hazardous energy sources. its occupational health and safety tool for the Executive Team and general Combined, they have accounted for 40% and reducing the risk directors of production assets called a of all severe injuries at the Group over the of work-related incidents. The roadmap Health and Safety Trigger to strengthen past 10 years. aims to enhance staff motivation and their focus by increasing or reducing competencies in the area using modern the amount of their bonus based on Building on global best practices, we WE ARE METINVEST ARE WE training methods, revise the Group’s the Group’s performance in this area. In have adopted new regulations governing qualification standards, as well as improve 2020, the trigger was extended to senior the LOTO procedure and working at safety performance monitoring and management of the Group’s assets. In height, along with implementation tracking progress. addition, a certain part of line managers’ and action plans. bonus was linked to such KPIs. As a result, In 2019, we rolled out a new the 2020 KPIs of almost 4,000 senior Metinvest has built and equipped new proprietary health, safety and and line managers were linked to their safety parks, as well as upgraded existing GOVERNANCE environment software solution performance in the area. ones, for employees at its Ukrainian assets CORPORATE throughout the Group to improve to practice working at height. Safety parks incident monitoring and reporting GRI 103-3; 403-2 contain multifunctional training areas systems. It consists of eight cloud- MANAGING HEALTH that simulate real working conditions and based modules, which include AND SAFETY RISKS allow workers to master practical safe- incident reporting and investigation, Metinvest’s encompasses working skills using safety equipment and

and inspections, risk all aspects of the Group’s operations, personal protective equipment (PPE). ENVIRONMENTAL from existing production processes to This approach to high-risk work helps to assessment and training, as well as ACTION development planning. During the planned investment projects. Across minimise the fear factor that may occur in reporting period, more than 1,300 the Group, it has introduced globally critical situations and mitigate risks when employees were trained to use the recognised standards, including employees perform such tasks. new system. identification (HAZID), environmental hazard identifier (ENVID) and hazard and GRI 103-3; 403-2 PEOPLE MANAGEMENT PEOPLE MANAGEMENT operability studies (HAZOP), job safety CONDUCTING INTERNAL AUDITS AND DEVELOPMENT GRI 403-1 and work safety analysis procedures, Metinvest relies on its internal In 2018, ISO 45001 replaced OHSAS as well as lock out, tag out (LOTO) and system to evaluate the compliance 18001 as the best practice in international permit-to-work methods. 3 of the Group’s assets with legislative occupational health and safety standards. requirements and corporate standards As of the end of 2019, four Metinvest During the reporting period, we carried governing occupational health and safety. out 31 risk assessments in accordance We conduct regular audits and inspections assets were certified in accordance with HEALTH AND SAFETY the ISO 45001:2018 standard. Another six with HAZID methodology and two to detect and promptly eliminate cases OCCUPATIONAL assets were certified in compliance with HAZOP risk assessments. of non-compliance. During the reporting OHSAS 18001:2007 and plan to undergo period, the Executive Team conducted ISO certification audits once their current As a part of our five-year roadmap, we 23 audits at the production sites. OHSAS certificates expire 2. have launched a critical Meanwhile, line managers performed programme aimed at preventing fatalities around 116,000 safety inspections and

Metinvest has developed a comprehensive and severe injuries at our production sites. identified over 167,000 cases of non- LOCAL COMMUNITIES set of KPIs called the Health and The programme involves conducting an compliance. To properly address these DEVELOPMENT Safety Traffic Light, which captures the in-depth analysis of the Group’s health issues and mitigate future risks, we performance of each asset’s occupational and safety performance and identifying introduced around 127,000 measures. health and . the root causes of incidents. The results of internal audits conducted in 2019 helped the Group’s assets to Health and safety performance is an During the reporting period, we chose increase the effectiveness of their health important part of the bonus programme two priority areas for the first stage of and safety management systems. for both senior management and line the critical risk management programme: ANNEXES

2 The Group’s assets that are certified in compliance with OHSAS 18001:2007 and plan to undergo ISO certification audits once their current OHSAS certificates expire as of the end of the reporting period are Azovstal, Ilyich Steel, Ingulets GOK, Metinvest-Promservice, Mariupol Machining and Repair Plant, Ferriera Valsider and Promet Steel. The Group’s assets certified under the ISO 45001:2018 standard as of the end of the reporting period included Metinvest Holding, Northern GOK, Central GOK and Spartan UK. 3 HAZID (Hazard Identification), ENVID (Environmental Hazard Identification) and HAZOP (Hazard and Operability Study) are procedures for assessing the safety and environmental effect of both new projects and existing processes. LOTO (lock out, tag out) is a safety procedure to ensure that potentially dangerous equipment has been shut down correctly to prevent hazardous releases during maintenance, repair or cleaning activities.