For a Better Future

1 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain For a Better Future Sustainability Report 2020 Sustainability report 2020 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain CONTENT 2 8 26 38 60 88 Evolving health, safety, GHG emissions Appendix 2 – Message from the CEO Our approach Our people GRI Content Index and environment system and energy efficiency to sustainability 27 Our approach 28 Personnel profile 39 Health, safety, and environmental 60 GHG emissions 94 5 9 Approach to sustainability 29 Staff recruitment and reduction governance 64 Boosting energy efficiency Appendix 3 – management 31 Learning and development 40 External Initiatives 67 Outlook for 2021 UN Global Compact communication About the Group 13 Ethics and business conduct 32 Motivation on progress 17 Sustainability risk management 34 Interaction with employees 5 Who we are 19 Stakeholder engagement 36 Human rights 41 68 6 Where we operate 20 Customer interaction 37 Outlook for 2021 and the midterm 96 7 What we produce 22 EVRAZ awards in 2020 Health and Safety Supporting local Appendix 4 – 23 Memberships of associations management communities Task Force on Climate-related Financial and institutions Disclosures 23 Tax liabilities 41 Approach 69 Management approach 25 Direct economic value generated 42 HS initiatives and projects in 2020 71 Local community support projects and distributed 44 Developing the safety culture 79 Goals for 2021 and the midterm 97 46 Occupational injury prevention Appendix 5 – 47 Health protection Environmental performance 48 Transport safety 80 48 External OHS activities Responsible supply chain 49 Emergency prevention and response 102 49 Goals for 2021 and the midterm management Appendix 6 – Independent practitioner’s assurance report 81 The Group’s supply chain 50 82 Management approach 82 Promoting sustainability throughout Environmental the supply chain management 83 Goals for 2021 and the midterm 51 Management approach 52 Reducing air emissions 84 55 Balancing water supply 56 Waste stewardship Appendix 1 – 58 Protecting biodiversity About this Report 59 Outlook for 2021 and the midterm 84 Approach to reporting 84 Report boundaries 84 Identification of material topics 87 Data preparation methodology 87 Assurance 87 Contact Information EVRAZ EVRAZ Annual Sustainability Report 2020 Report 2020 Sustainability report 2020 2 3 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain GRI 102–14 In the reporting period the health employees began working remotely. to identify and eliminate safety related risks and safety of employees became The Group believes that these measures and to bolster the safety culture through a particularly pertinent issue due to COVID- helped significantly in reducing the spread gamification. MESSAGE 19. The Group promptly implemented of the virus. all necessary measures and successfully At Raspadskaya the Group introduced FROM THE CEO adapted to new working conditions: foreign EVRAZ also endeavours to be one the pilot version of a digital network business trips were cancelled; business of the leading companies that actively use that uses artificial intelligence methods trips in Russia were restricted; transport, the latest technologies and innovations to prevent incidents: the 24/7 network canteens, and work spaces were sanitised in the area of health and safety. In 2020, ensures that employees use personal daily; thermal imagers and pyrometers as part of the risk management system, protective equipment. It is also planned were installed at checkpoints; all mass the Group launched a new mobile app, to roll out the system for vehicles, events were postponed; and most office Hunt for Risk, which allows employees with a view to monitoring that safe driving practices are being followed. HUMAN CAPITAL MANAGEMENT Our activity in the area of human resources Top-300 programme was held to train additional holiday days in case certain management is aimed at ensuring that production managers. Due to the success events arise, and financial assistance interaction with employees is based of the programme it was decided to expand in difficult life circumstances. In addition, on respect of human rights. All employees it, consequently in 2020 the Top-1000 the Group organises cultural and sporting have equal opportunities in terms programme was launched, covering events for employees and their families. of professional and personal skills, career specialists who practice effective goal- growth, a decent salary, and an attractive setting and feedback, delegation, and other EVRAZ strives to adhere to high standards social package. aspects of management. in the area of employee engagement. In order to be more productive in this Alexander Frolov Education and training are important In 2020 EVRAZ completed work to enhance area, in 2020 the Group began planning its Chief Executive Offcer aspects of staff management and key drivers the target remuneration system. Now employer brand development strategy. This of employee development within the Group. the system is even more transparent initiative confirms the Group’s commitment Each year EVRAZ implements new training and balanced (in terms of fixed and variable to being the best employer in the regions programmes, which often become a regular parts) and reflects how well the employee, where we operate and to earn the trust Dear Stakeholders, COVID-19 has encouraged us even more The year 2020 was a major challenge feature within the Group, with the most team, and department are performing. and support of our employees. to make positive change for all groups for many companies and industries, effective initiatives being embraced. The social package includes voluntary Despite the fact that 2020 was marked of people that influence and are impacted including mining and metals. We made For example, in the reporting year the third medical insurance, a pension scheme, by various unprecedented and unexpected by our business. Although, EVRAZ has every effort to adapt to the changes events, which in many ways changed always adopted a responsible approach brought about by the COVID-19 the world, EVRAZ maintained its to doing business, in 2020 we made even pandemic, and we are proud to report commitment to creating long-term value greater efforts to attain UN Sustainable that we were able to respond rapidly to it. MANAGING ENVIRONMENTAL IMPACTS for all stakeholders. In this unstable Development Goals, and we plan We tweaked business processes, fine- environment EVRAZ once again confirmed to continue on this course. Also, in August tuned our performance, and maintained its status as a responsible employer 2020 EVRAZ joined the UN Global high product quality. Despite the difficult The protection of the environment that production processes at all enterprises and quantitative indicators compared and business partner, and also continued Compact, one of the world’s foremost situation across the world, a new working and combating climate change are gradually comply with applicable requirements. to previous periods. In 2020 the GHG to implement projects and initiatives initiatives in the field of sustainable environment, and demand volatility, EVRAZ coming to the forefront of the strategies The system is embraced at all enterprises emission intensity level was 1.97 tCO2e/tcs to protect the environment and develop development. generated EBITDA of US$2,212 million. of global companies, organisations, and is based on the plan-do-check-act (tonnes of carbon dioxide equivalent per local communities. and governments. EVRAZ has also (PDCA) model. In 2020 EVRAZ made major tonne of crude steel) and the Group achieved committed to these initiatives and adheres improvements in the area of managing its its goal of a GHG emission indicator of below to a responsible approach in its operations. environment impacts. The Group reduced 2 tCO2e/tcs. The Group’s total energy In 2020 the Group elaborated its its total atmospheric emissions from steel consumption fell 5.7% year-on-year. OCCUPATIONAL HEALTH AND SAFETY Environmental strategy, which sets ambitious production by 3.7% compared to the 2019 climate targets for 2030 and is aligned level, and recycled 102.7% of non-mining I am particularly proud to mention that with sustainable development principles. waste and by-products (target: 95%). Fresh EVRAZ’s environmental protection activity Ensuring comfortable and safe working approaches their work with an understanding drop on the figure for 2019. The Group EVRAZ is also seeking to expand the scope water consumption in 2020 stood at 206.2 has been recognised at international level. conditions and monitoring and safeguarding that safety comes first. achieved zero fatalities among contractors, of its commitments to include United million m3. The Group took second place in the Wall employee health are our top priorities. however, I deeply regret to report that Nations Sustainable Development Goals, Street Journal ranking of the world’s 100 The Group seeks to ensure that a safety Our work in the area of occupational in 2020 there were five fatalities among the Paris Agreement, and the requirements In the reporting period EVRAZ published most sustainably managed companies; culture exists at all stages of production safety is geared

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