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 towards achieving zero our employees. The Group carried out of the Intergovernmental Panel on Climate its first Climate Change Report, based over 5,500 global public companies and covers all employees and contractors. fatalities and reducing the lost time injury thorough investigations and took measures Change (IPCC). on recommendations from the Task Force were evaluated, across 26 categories, For this purpose, EVRAZ regularly implements frequency rate (LTIFR). In 2020 the LTIFR to prevent such cases from reoccurring on Climate-Related Financial Disclosures and EVRAZ gained recognition for its measures and educational programmes among the Group’s employees stood at 1.58 in the future. The Group has an Environmental (TCFD). The report contains detailed projects related to reducing emissions aimed at making sure that everyone per 1 million hours, which was a 22.5% Management System (EMS) in place, which information on the Group’s approach and boosting energy efficiency. manages environmental risks and monitors to climate change, climate risk management, Sustainability report 2020 4 5 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
ABOUT THE GROUP
GRI 102-1 GRI 102–3
EVRAZ is a global steel, mining Corporate profile and vanadium company and the leading producer of infrastructure steel products. THE GROUP NAME CEO The Group has three business production segments located in Russia, USA, Canada, EVRAZ plc Alexander Frolov Kazakhstan and Czech Republic.
The Group supplies its products OFFICE IN THE UK BUSINESS SEGMENT to more than 70 countries and stands England, 2 Portman street, London among the top global steel and coal Steel, mining and vanadium business producers. EVRAZ is listed on the London W1H 6DU Stock Exchange and is a constituent of the FTSE 100 Index. OTHER MAJOR OFFICES YEAR OF ESTABLISHMENT
Russia, Moscow str. Belovezhskaya, 4, 1992 Block B
71 S. Wacker Drive, Suite 1700, Chicago, IL 60606
GRI 102–6 COMMUNITY RELATIONS WHO WE ARE
Maintaining and fostering well-being The Group is especially proud that a challenging year we showed flexibility, and social stability in the regions our employees are actively engaged in social improved our performance in many areas, Leading industry Financially Clean where we operate are essential aspects initiatives implemented in the regions and demonstrated not only the stability of the EVRAZ sustainability practice. of operations, acting as volunteers of the Group, but also an ability to achieve positions sustainable company environment Each year the Group earmarks significant and helping vulnerable groups and people sustainable growth. I would like to thank funds for organising large-scale cultural in challenging life circumstances. all our stakeholders for their support • a vertically integrated global steelmaker. • consolidated revenue amounted • water consumption amounted and sporting events, implementing and contribution to the Group’s development. • one of the lowest-cost global steel to US$9,754 million. to 206.2 million m3. educational projects, and improving In the reporting period EVRAZ held its Under all circumstances EVRAZ in turn producers. • consolidated EBITDA reached • total amount of air pollutant emissions healthcare and infrastructure. traditional annual grant contest: City will strive to do even more for the overall • the market leader in construction steel US$2,212 million. from steel production decreased by 3.7%. of Friends – City of Ideas, which allows prosperity of businesses, employees, products. • the Group recycled or reused 102.7% Most EVRAZ initiatives are encompassed representatives from local communities and communities in the regions where • the leading global supplier of rails. of non-mining waste and byproducts. within three main areas of social and other stakeholders to present projects we operate, thereby facilitating sustainable • a global leader in the production Sound • total energy consumption fell by 5.7% investment: EVRAZ for Kids, EVRAZ to enhance urban spaces and protect development for a better future. of vanadium. year-on-year. for Cities, and EVRAZ for Sports. the environment. This year 44 projects • the largest coking coal producer in Russia. employment As part of its commitment to local received grants from the Group. • a geographically diversified business. communities, during the reporting • 69,699 people have stable employment. period the Group invested in setting up In 2020 EVRAZ placed a particular • EVRAZ wage ratio is up to three Safe and healthy two R&D centres at the Siberian State emphasis on healthcare support, on account times higher than wages in the region AMONG RAIL AMONG RAIL and workspace Industrial University in Novokuznetsk, of the pandemic. The Group provided SUPPLIERS SUPPLIERS of presence. one of which – the Digital Competence financial support to purchase medical IN RUSSIA IN NORTH • 337 employees took part in corporate Centre – allows students to acquire equipment and personal protective AMERICA management development programmes. • 100% of EVRAZ employees are covered highly in-demand IT skills. EVRAZ equipment for hospitals in the regions where • Over 43,500 employees were covered by the Health and Safety management also held workshops and educational we operate and opened new medical centres by the Target remuneration system, system. programmes for children, and provided and COVID-19 diagnostic laboratories. WE ARE implemented in 2020. • the major metallurgical enterprises No 1 financial support for orphanages, schools, of the Group are certified under ISO 45001 and family centres. Investing in holding 2020 negatively impacted many businesses, and OHSAS 18001. AMONG sporting events and development activities people, and their families. It affirmed IN CONSTUCTION • LTIFR stood at 1.58, which was 22.5% lower THE RUSSIAN for children and adults, as well as building the importance of being ready for unexpected STEEL MARKET than in 2019. COKING COAL sports facilities, are great ways to promote events and being able to react quickly Alexander Frolov IN RUSSIA • zero fatalities among contractors in 2020. PRODUCERS a healthy lifestyle. to change. We are proud that in such CEO • 42,136 employees underwent Risk Management Project training. Sustainability report 2020 6 7 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI 102-4 GRI 102-7 GRI 102-7 WHERE WE OPERATE WHAT WE PRODUCE
EVRAZ is a leading producer in steel specific technical conditions, the purpose version of the official EVRAZ website). EVRAZ OPERATES IN FIVE COUNTRIES: RUSSIA, USA, CANADA, markets and supplies its products of the product and how it will be used EVRAZ constantly works on improvement to customers from 70 countries worldwide. further. of its products and services to strengthen KAZAKHSTAN, CZECH REPUBLIC. Our broad product line is used in most our long-term relationships with partners production industries, including The Group’s products meet the highest and customers and to create value for all construction, rail infrastructure. Our output standards and are certified (a number stakeholders. is tailored to the customer’s location, of certificates can be viewed at the English Steel Coal Steel, North Number 5,948 segment segment America of employees1 EVRAZ KGOK GRI 102–2 segment Main and ancillary products 13,359 178 EVRAZ NTMK Type of products Description EVRAZ Red Deer Construction products EVRAZ produces steel that is used to construct residential homes, office buildings, stadium, bridges and other infrastructure facilities. 64 243 EVRAZ Nikom EVRAZ Calgary
Railway products Our product line is used in production of almost every element of rail infrastructure 91 (includes rails, parts for carriages, and railway wheels). EVRAZ Camrose 15,578 Raspadskaya Coal Company 1,072 EVRAZ Regina Tubular products EVRAZ is a leading supplier of large diameter line pipes for oil and natural gas transportation, and is the only supplier of LD pipe that is fully made in Canada. We are also a leading producer of small diameter line pipes used in construction, energy exploration, and production.
Industrial products EVRAZ is a major player in the industrial market. Our products are used in most industries, as following: • mining. • machine-building. • hardware.
Vanadium products EVRAZ is the only full-cycle producer of vanadium in the world, and offers a complete range of vanadium products. The Group produces around 20 high- purity, performance-based vanadium chemicals, and also offers an extensive line of vanadium alloys that can double the strength of mild steel. 22,531 EVRAZ ZSMK Raw materials For main metallurgical production EVRAZ also extracts the raw materials such as iron ore, coking coal, and limestone. A significant share of The Group’s internal iron ore and coking coal consumption is covered by own mining operations.
1,022 202 EVRAZ Pueblo EVRAZ Caspian Steel We greatly value our clients, and therefore We widely apply a range of modern and partners can find interesting EVRAZ strive to improve not only our products, technologies in all our activities, Events application. We also developed but also the process of interaction including developing and using mobile EVRAZ Wheels and EVRAZ VR applications 302 610 with customers, ensuring an individual applications. EVRAZ employees can get that provide virtual reality tours around EVRAZ Portland EVRAZ Vanady-Tula approach to each. access to information and HR services our production facilities. by downloading EVRAZ app. Clients 1. The map only presents the Group’s key enterprises. For this reason, the sum of the numbers below doesn’t match the total number of the Group’s employees at the end of the year. Sustainability report 2020 8 9 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Our approach APPROACH TO SUSTAINABILITY to sustainability MANAGEMENT
for a Better Future As EVRAZ recognises the significant role initiatives and by policymakers. We “We are proud to announce that that sustainability principles and values play act in line with the top international in 2020 EVRAZ has joined one in any business’s growth and prosperity, standards, including OECD’s of the leading global sustainable it works constantly to integrate them Guidelines for Multinational Enterprises development initiatives – into its business processes. At EVRAZ, and the provisions of the United Nations the UN Global Compact. We are continuously working 2020 highlights Global Sustainable we consider sustainable development Universal Declaration of Human Rights. to be an essential part of our success. to contribute to the implementation and promotion of the 10 Principles Development In 2020, EVRAZ joined the UN Global in support of human rights, We are convinced that optimal efficiency Compact initiative. US million LTIFR labour rights, the environment $38 1.58 Goals within our sustainability activities can 1 and anti-corruption.” spent on social expenses in 2020 per 1 million hours only be achieved by following the best For detailed information please see Appendix 3 – practice enshrined in leading sustainability UN Global Compact communication on progress. → Alexander Frolov Chief Executive Offcer US$56.9 million 1.97 invested in improving environmental tCO2e per tonne performance per tonne of steel cast GHG intensity rate In order to ensure that sustainable development issues are considered across the Group’s business processes and operational stages, we have organised activities in this area into four main spheres: 69,699 employee headcount at the end of the year PRIORITY SUSTAINABLE DEVELOPMENT AREAS
EMPLOYEE WELL-BEING ENVIRONMENTAL ECONOMIC STABILITY LOCAL COMMUNITY 1. Excluding fatalities and data on contractors. Providing employees PROTECTION Ensuring stable economic DEVELOPMENT with safe working Reducing adverse impacts growth and creating long- Contributing conditions, wide learning from our operations term value for the Group. to the achievement and development on the environment. See the sections Ethics of economic prosperity opportunities, See the section Environmental and business conduct, p 13 →; and providing social support and competitive management, p 50 → and Direct economic value in our regions of operation. generated and distributed, compensation packages. See the section Supporting local p 25 → See the sections Our People, communities, p 68 → p 26, and Health and Safety p 41 →
OUR CONTRIBUTION TO ATTAINING SUSTAINABLE DEVELOPMENT GOALS (SDG)
GRI 102–12
EVRAZ fully supports the Sustainable our potential positive and negative In 2020, we conducted a questionnaire Development Goals (SDG) adopted impacts on the environment, society, survey among our internal stakeholders in 2015 by the UN General Assembly. and the business community, we created to determine the most pressing SDG We are continually performing a list of 11 priority Sustainable Development to focus on in 2020. These goals substantial work in order to contribute Goals, which we are constantly striving are marked “2020 focus” in the table below. to attaining them. As a result of analysing to achieve. Sustainability report 2020 10 11 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ inputs to meet Sustainable Development Goals SDG Our inputs
SDG Our inputs Ensure inclusive and equitable quality education and promote lifelong learning See the sections Our People, p. 26; opportunities for all: Supporting local communities, p. 68 → Ensure healthy lives and promote well-being for all at all ages: See the sections Our People, p. 26; • Providing employees with quality professional education opportunities. • High quality compensation packages for employees, which include comprehensive Health, Safety, and Environmental • Supporting education and improving conditions in local educational organisations. medical insurance for our employees and their families. Governance, p. 39; Supporting local communities, p. 68 → • Initiatives to promote healthy lifestyles among the Group’s employees and local communities. Particular attention is paid to the younger generation. Promote sustained, inclusive, and sustainable economic growth, full and productive See the sections Our people, p. 26; Health, Safety and Environmental 2020 focus • Investing in building sports facilities in EVRAZ’s regions of operation. employment, and decent work for all: • Providing employment opportunities in the regions of operation. Governance, p. 39; Supporting local communities, p. 68; See the section Environmental Management, • Ensuring equal opportunities for all employees. Ensure the availability and sustainable management of water and sanitation for all: Responsible supply chain management, p. 50 → • Cutting the Group’s freshwater consumption and increasing the quality and volume • Ensuring prevention of any modern forms of slavery. p. 80 → of recycled water. • Meeting our tax obligations. • Providing safe working conditions.
2020 focus Build resilient infrastructure, promote inclusive and sustainable industrialisation, See the section Supporting local and foster innovation: communities, p. 68 → Ensure access to affordable, reliable, sustainable, and modern energy for all: See the section Environmental Management, • Supporting and organising infrastructure development projects in the regions • Lowering electricity use in each segment of the Group. p. 50 → of operation. • Promoting initiatives aimed at generating electricity internally.
Make cities inclusive, safe, resilient, and sustainable: See the section Supporting local 2020 focus • Supporting the development of social infrastructure in the regions of operation. communities, p. 68 → • Concluding agreements with local authorities to raise living standards. Take urgent action to combat climate change and its impacts: See the section Environmental Management, • Reducing the consumption of energy in the Group’s activities and boosting energy p. 50 → efficiency in order to reduce CO2 emissions. Ensure sustainable consumption and production patterns: See the section Environmental Management, • Reducing the volume of waste generation and increasing the volume of waste p. 50→ 2020 focus recycled.
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable, and inclusive institutions at all levels: • Compliance with all applicable legislation. • Respecting human rights. • Fostering anti-corruption and bribery initiatives, preventing conflicts of interest. • Combating modern forms of slavery.
Strengthen the means of implementation and revitalise the global partnership See the sections Environmental Management, for sustainable developments: p. 50; • Implementing and supporting sustainability initiatives promoted by Russian Responsible supply chain management, p. 80 → and international sector associations and institutions.
KEY DOCUMENTS
EVRAZ has elaborated a number the issue of personnel management: • Social Investments Guidelines. of internal corporate documents that the Human Rights Policy and the Diversity • The Anti-Corruption Policy. govern the Group’s activities in all and Inclusion Policy. • The Hotline Policy. priority areas of sustainability. The list • The Policy on Main Procurement of regulations, as well as the documents The main documents elaborated Principles. themselves, are regularly revised for the Group and EvrazHolding • The Human Rights Policy. and updated in order to ensure that they are the following: • The Diversity and Inclusion Policy. still conform to the rapidly changing • The Code of Business Conduct. • Modern Slavery Statement. external environment. In 2020 EVRAZ • EVRAZ Supplier Code of Conduct. elaborated two new policies which address • The Health, Safety, and Environmental Policy. Sustainability report 2020 12 13 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
ORGANISATIONAL STRUCTURE ETHICS AND BUSINESS As the Group strives to ensure with determining the general course corresponding to their functions, the integration of sustainability of EVRAZ’s sustainable development. and the managers of business segments CONDUCT principles into all its business processes, The CEO and Management Board apply the adopted initiatives in their the sustainable development organisational monitor activities related to sustainability. segments in accordance with their business structure covers all organisational levels Directorates, headed by vice-presidents, functions. of the Group. The Board of Directors are responsible for setting respective APPROACH TO PROMOTING FAIR BUSINESS PRACTICES and its committees are tasked goals and performing specific tasks EVRAZ recognises that business The Group has elaborated a set of internal of ethical behaviour adopted by the Group. GRI 102–18 transparency facilitates trust-based relations documents on business ethics, which In the previous reporting period, these with all stakeholders and enhances must be complied with by all employees documents were duly updated in order Sustainable development organisational structure the economic and social environments of the Group. These comprise: to reflect the changes that took place in which the Group operate. The Group • The Code of Business Conduct. in the Group since their first appearance Corporate level has high standards for employees • The Anti-corruption Policy. in 2013. In 2020, EVRAZ continued to update Audit Committee and contractors in terms of fair • The Anti-corruption Compliance System the documents and supplemented the Anti- business conduct, and places emphasis Policy. corruption Policy and Code of Business Nominations Committee on demonstrating a responsible approach • The Anti-corruption Training Policy. Conduct with policies on managing conflicts to preventing, identifying, and responding • The Charitable donation and Sponsorship of interest and on sponsorship and charity to cases of bribery, corruption and other Policy. activity. These procedures allow more Health, Safety, and Environment THE BOARD types of malpractice. In the event of fraud, • The Gifts and Business Entertainment efficient management of corruption-related Committee EVRAZ makes every effort to eliminate Policy. risks. the consequences, address the causes, • The Hotline Policy and whistleblowing Remuneration Committee CEO Risk Management Group and prevent the reoccurrence of such cases procedures. All employees of the Group are obliged in the future. • The Conflicts of Interest Policy. to adhere to the ethical principles set MANAGEMENT • The Human Rights Policy. out in the Code of Business Conduct. EVRAZ adheres strictly • The Diversity and Inclusion Policy. The Code refers to such principles with the requirements of both Russian • Modern Slavery Statement. as equality of rights and opportunities, and international legislation, including respect for people, rejection of all forms Commerce Corporate Compliance the Russian Law “On Preventing The Anti-corruption Policy and Code of discrimination and slavery, zero tolerance and Business Health, Safety, Strategy Corporate Legal with Business Corruption”, the UK Bribery Act, of Business Conduct are two key documents towards corruption, as well as the following HR Vice Development, CFO and Environment and Performance Communications Vice Procedures and Asset President and the US Foreign Corrupt Practices Act. that set forth the principles and norms principles of conducting business. Senior Vice Vice President Management, Vice President President Protection Vice President Vice President President GRI 102–16 The EVRAZ principles of conducting business Procurement Anti-Corruption Compliance IR Directorate PR Directorate GR Directorate Directorate Function OUR PRINCIPLES FOR CONDUCTING BUSINESS
Directorates of corresponding functional lines
Operational level RESPECT ENRICHMENT VALUE FOR OUR ACCOUNTABILITY ZEAL FOR PEOPLE THROUGH CUSTOMERS FOR ACTIONS FOR CONTINUOUS Management of segments and units in Group companies Safe working COLLABORATION By continually AND RESULTS IMPROVEMENT conditions Working together improving our products We consistently aspire By developing and the development as one team, and services, we will to achieve our goals, and implementing Functional areas and units in Group companies of our people we achieve optimum strengthen long-term and are responsible new ideas, we facilitate and local communities results. relationships with our for the results. the sustainable growth are integral parts customers. of our company. of the EVRAZ business.
For more information on the contents of these documents, see our corporate webpage https://www.evraz.com/en/sustainability/anti-corruption/ → Sustainability report 2020 14 15 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Approaches to combating corruption Compliance managers, who have been with Business Procedures and Asset RAISING AWARENESS OF ETHICAL BUSINESS CONDUCT and adherence to ethical business conduct appointed at each significant subsidiary, Protection support. are applicable for all Group entities actively monitor employees’ compliance A commitment to ethical behaviour For the past several years Group’s and tests on issues covered in the Anti- and are implemented across all levels. with internal documents, examine In addition, compliance managers monitor underpins EVRAZ’s corporate culture, employees have attended an online corruption Policy. In addition, the Group The Audit Committee (which reports reports of possible cases of corruption charity and hospitality expenses, conduct and the Group therefore focuses on raising anti-corruption course. Developed has elaborated a course on the Code to the Board of Directors), together and other malpractice, conduct respective checks of potential and existing business awareness of ethical principles among by Thomson Reuters, it covers such of Business Conduct and is working with compliance managers, play the key role investigations when necessary. The results partners, analyse and prevent potential employees and contractors. topical issues as business gifts, hospitality, on a conflicts of interest course. Together, in anti-corruption activity. The committee of investigations (reports and related conflicts of interests, and are involved supplier communications, and charity. these courses will form a single programme GRI 205–2 is responsible for monitoring the overall recommendations) are presented in monitoring tender procedures. The course consistently emphasises that, if that is mandatory for all managers effectiveness of the Group’s anti-corruption to the business unit’s senior management, Mandatory requirements in the form an employee suspects that inappropriate of the Group. system, investigations in this area, and issues the Group’s compliance manager, of corporate policies and documents behaviour has taken place, they should related to corruption risks. and the Vice President, сompliance are published on EVRAZ’s internal contact compliance managers or call EVRAZ also requires compliance and external websites, so that each the Hotline. In 2020, over 3,400 employees with the principles of ethical behaviour employee and other stakeholders can throughout the Group completed online on the part of suppliers and counterparties. refer to them at any time. The Group also anti-corruption training. To this end, each contract contains ANTI-CORRUPTION RISK MANAGEMENT introduces new employees to the principles an appendix with a reference to the need of ethical behaviour and ensures that In 2020, EVRAZ decided to improve to comply with EVRAZ anti-corruption all employees are aware of and have its in-house capabilities and to move requirements and a link to the website EVRAZ adopts a systematic approach most vulnerable to risks (procurements, The Group is proud to report that access to up-to-date information as well beyond externally provided trainings. where the Anti-corruption Policy to identifying, assessing, and managing payments, sales, charity and sponsorship, the robustness of its anti-corruption as any changes in regulatory documents. The Group is now developing its own is published. In 2020, the Group worked risks related to corruption and bribery. government relations, and others), practices and policies allowed it to quickly Learning Management System, which will out a course on EVRAZ anti-corruption The main documents governing the Group’s a detailed analysis of the system of controls adapt to the uncertainties brought EVRAZ’s education initiatives in the field considerably enhance the effectiveness principles for suppliers and counterparties, handling of these risks are the Anti- and procedures is performed. Compliance on by the pandemic and ensure of ethical behaviour make a significant of employee training management, which has already been taken by around corruption Policy and Anti-corruption managers monitor existing risks the integrity of business ethics. In 2020, contribution to preventing corruption as the courses will become more 300 counterparty managers. In 2021, Compliance System Policy. and proactively identify new and emerging there were no investigations initiated and bribery. Top management frequent and relevant to the specifics it is planned to further develop ones. Information on risks is reported into suspected corruption involving state are committed to raising the employees’ of the Group’s operations. The course the Learning Management System, improve At the end of each year, compliance to the Audit Committee. or public authorities. However, compliance awareness of strict ethical standards Anti-corruption Policy Requirements has the training system for counterparties managers at all subsidiaries perform managers’ own leads regarding potential of business behaviour. They systemically already been elaborated by the Group on the Group’s principles in the sphere GRI 205–1 a comprehensive analysis of corruption- fraudulent schemes between unscrupulous and regularly elaborate on its importance and is implemented. The course will of ethical business conduct. related risks in respect to all assets The corruption risk assessment managers and suppliers/providers led and value in communication with specialists, be assigned to each employee every and business processes of the Group. for 2020 was made in January 2021, to investigations. The employees involved managers, and administrative personnel. two years, it contains assignments For business processes that are by nature due to the COVID-19 pandemic. were dismissed and vendors banned.
WHISTLEBLOWING HOTLINE
For more information on the analysis and management of corruption-related risks, GRI 205–3 see the Anti-corruption and antibribery section EVRAZ encourages employees depending on the subject of the report. of the Annual report. → and stakeholders to adhere to the principle The specialists then analyse the report As a result of the well-structured process of transparency and to report cases and take specific measures to resolve in place for handling reports, year- of misconduct or issues that they find the issue. If the report is not anonymous to-year there is growing confidence concerning or suspicious, using a 24/7 and the person has provided contact in the whistleblowing hotlines among whistleblowing hotline which guarantees details, the Group informs them the Groups’ employees and stakeholders. anonymity. about the status of the report as well In 2020, 1,096 reports were submitted as respective measures taken. via the Corporate Whistleblowing The Group operates two separate hotline, and 49 via the ENA hotline. Out whistleblowing hotlines: All complicated, controversial, or sensitive of all the reports received, 50 related • The Corporate Whistleblowing hotline issues and handled by the Hotline to fraudulent intent. The respective for all major plants, including the Siberia Committee (for the Corporate contracts with the employees concerned Region (Steel and Coal segments), Whistleblowing hotline) and the Hotline were terminated, and necessary the Urals Region (Steel segment), EVRAZ Team (for the ENA whistleblowing measures were taken to prevent such Vanady Tula, and EVRAZ Metall Inprom. hotline), which include senior executives, cases from reoccurring in the future • The EVRAZ North America (“ENA”) so the Group can be confident that all and to eliminate the consequences. hotline. appropriate measures are taken to address reports. Incoming reports are registered in the IT system and then allocated to relevant specialists (e.g. HR, HSE, Security), Sustainability report 2020 16 17 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Working process of Corporate Whistleblowing hotline SUSTAINABILITY RISK
1. AN INDIVIDUAL MAKES A REPORT MANAGEMENT
Communication through available channels: GRI 102–11 • email ([email protected] and [email protected]) • the hotline phone number • and internal corporate portal APPROACH TO MANAGING SUSTAINABILITY RISKS
Risk management forms an essential There is a unified framework in place At EVRAZ, we apply the same approach 2. CONTACT CENTRE element of the Group’s activities in the Group that is used to identify, to managing financial and non-financial and is aimed at attaining its strategic assess, and manage risks at both corporate risks. Hence the Group takes actions Key role: collecting and registering reports objectives, including those related and operational level. Risk management to manage risks related to sustainable Corporate Whistleblowing hotline: reports are received and registered by an in-house contact centre to sustainability. The risk management consists of the timely identification, development: environmental, social, ENA Whistleblowing hotline: reports are received and registered by a third party, Navex Global approach was elaborated in EVRAZ analysis, and assessment of risks and economic, as well as the other to cover all the Group’s business processes and implementing appropriate measures risks that it is exposed to (strategic 3. RESPONSIBLE EXECUTIVE and is adopted in all its operations. when necessary. and financial). For detailed information about our organisational Key role: ensuring the transparency, swiftness, and independence of whistleblowing procedures The table below describes the Group’s sustainability related risks and gives an overview structure of sustainability risk management Corporate Whistleblowing hotline: Vice President of Corporate Communications, Internal Audit Director of the Group’s measures to manage them. see EVRAZ sustainability report 2019, p. 26. → ENA Whistleblowing hotline: General Counsel and Corporate Secretary, Internal Audit Director, Director of Corporate Security The Group’s sustainability risks
4. SERVICES RESPONSIBLE FOR HANDLING REPORTS Risk Description Risk management actions Key role: investigating issues and preparing appropriate responses/solutions HSE: environment Steel and mining production carry an inherent risk • EVRAZ monitors its environmental risk matrix on a regular basis, At the end of the investigation feedback is provided to the person that submitted the report (if the message is not anonymous) of environmental impact and incidents relating and develops and implements mitigation measures in response to these to issues as diverse as water usage, quality of water risks. The top management also devotes greater attention to monthly discharged, waste recycling, tailing management, monitoring of environmental risk trends and factors. air emissions (including greenhouse gases), • The Group implements programmes to reduce air emissions and water use Topics and percentages of popular issues raised via Corporate Whistleblowing hotline, 2019–2020, % and community satisfaction. at its plants, as well as to improve its waste management practices. Consequently, EVRAZ faces risks including • EVRAZ has developed an environmental strategy and has updated its list regulatory fines, penalties, adverse reputational of projects in accordance to achieve strategic goals regarding emissions Labour relations 45 Labour relations 39 Public services 14 Public services 17 impact and, in the extreme, the withdrawal of plant and waste. The strategy is being implemented through dedicated Hazardous conditions 2 Hazardous conditions 4 environmental licences, which would curtail programmes in each division. Violation of Cardinal Safety Rules 1 Violation of Cardinal Safety Rules 4 operations indefinitely. • Most of the Group’s operations are certified under ISO 14001 and work Employees and managers relations 1 Employees and managers relations 2 Globally, there is an increase in regulatory scrutiny is ongoing to bring the remaining plants in compliance with this Prosecution of employees for using hotline 1 Prosecution of employees for using hotline 0.3 and pressure, as well as investor and customer international standard. EVRAZ is currently compliant with REACH 2020 Other 20 2019 Other 20 Labour compensation 6 Labour compensation 6 expectations. requirements. Corruption and fraud 5 Corruption and fraud 3.7 • The Group has begun to develop a Climate Change Strategy, including Information 2 Information 2 performing various scenario analyses and identifying appropriate risks. Personal protective equipment 3 Personal protective equipment 2 • EVRAZ also participates in the development of GHG emissions regulation (except quality) (except quality) in Russia. In addition, the Group has achieved reductions in GHG emissions as a positive side-effect of its energy efficiency projects.
HSE: health, Inherent HSE risks include the potential danger • To mitigate these risks, EVRAZ ensures that its management KPIs place safety of fire, explosions and electrocution, as well as risks significant emphasis on safety performance and the standardisation specific to individual mines, where elevated methane of critical safety programmes. levels, rock falls and other accidents could lead • The Group is implementing an energy isolation programme, further Topics and percentages of popular issues raised via the ENA whistleblowing hotline, 2019–2020, % to loss of personnel, outage or production delays, developing a programme of safety observations behaviour to drive loss of material, equipment or product, or extensive a more proactive approach to preventing injuries and incidents, Accounting, Auditing and Internal Financial 2 Discrimination or Harassment 33 damage compensation. as well as launching a series of health and safety initiatives related Controls Other 21 In addition, the breach of any HSE laws, regulations to underground mining. Conflict of Interest 8 Environmental Protection, Health 2 and standards may result in fines, penalties • Other measures include implementing maintenance and repair Discrimination or Harassment 31 or Safety Law and adverse reputational impacts and, in the extreme, modernisation programmes, launching a downtime management system, Environmental Protection, 21 Inquiry 2 the withdrawal of mining operational licences, thereby further developing the occupational safety risk assessment methodology, 2020 Health or Safety Law 2019 Conflict of Interest 10 Inquiry 4 Safety 14 curtailing operations for an indefinite period. as well as analysing the effectiveness of corrective measures. Other 14 Relation 6 There is also the risk of infection with COVID-19, • In addition, the Group conducts mass testing of personnel for COVID- Safety 16 Gifts and Entertainment 4 which may be associated with the need for a mass 19 and has introduced reliable barriers to prevent carriers of the virus Violence or Threat 4 Violence or Threat 8 quarantine of workers. from entering its facilities.
Business Prolonged outages or production delays, especially • The Group has defined and established disaster recovery procedures interruption in coal mining, could have a material adverse effect that are subject to regular review. Business interruptions in mining mainly on the Group’s operating performance, production, relate to production safety. Measures to mitigate these risks include financial condition and future prospects. methane monitoring and degassing systems, timely mining equipment In addition, any long-term business interruption may maintenance, as well as employee safety training. result in a loss of customers and competitive • EVRAZ performs detailed incident cause analyses to develop advantage, as well as damage to the Group’s and implement preventative actions. Records of minor interruptions reputation. are reviewed to identify any more significant underlying issues. Sustainability report 2020 18 19 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Risk Description Risk management actions Potential New laws, regulations or other requirements • EVRAZ and its executive teams are members of various national industry STAKEHOLDER regulatory actions and regimes could limit the Group’s ability to obtain bodies. As a result, they contribute to the development of such bodies by governments, financing on international markets, sell its products and, when appropriate, participate in relevant discussions with political ENGAGEMENT including trade, and purchase equipment. EVRAZ may also and regulatory authorities. The Group seeks to monitor potential legislative antimonopoly, be adversely affected by government sanctions changes before their introduction, at the point when new laws are being antidumping against Russian businesses or otherwise reducing its drafted. EVRAZ recognises the significance of fully We are constantly improving our channels stakeholders, therefore, we seek to use regulation, ability to conduct business with counterparties. • EVRAZ has implemented and will further develop procedures to ensure sanctions There is a risk of adverse geopolitical situations that sanctions requirements are complied with across its operations. While addressing concerns and expectations of all of communication so that they are easier the optimal and most convenient means regimes, in the countries where the Group operates. the Group’s internal compliance controls address the associated risks, groups of its stakeholders, since this fosters to use and more effective. Despite of communication. For example, the Group and other laws Other risks include the possibility that EVRAZ could the general uncertainty in the area increases management’s focus on this the building of respectful, transparent, having a number of different channels, actively participates in developing local and regulations fail to adapt to new market conditions or could incur risk. and mutually beneficial relationships we promote the idea of having a unified communities and cooperates with local losses connected with existing contracts in case • EVRAZ also continuously monitors changes in temporary legislation with them. information field and try to demonstrate authorities and other industrial enterprises of additional sanctions implementation. related to the COVID-19 pandemic. our vision and values to a broad range to improve the ecological situation in our During the process of elaborating of stakeholders. regions of operation, through both Product Excessive supply on the global market and greater • EVRAZ works to expand its product portfolio and penetrate new communication approaches for different combined and individual efforts. competition competition, mostly in the steel products market, geographic and product markets as well as to improve product quality. groups of stakeholders we strive to ensure We believe that open communication primarily due to competitors’ activity and introduction • The Group constantly works on the development and improvement loyalty that we include all stakeholders, initiate and information transparency of new facilities. Low demand for construction and on the implementation of customer focus programmes and initiatives. a two-way dialogue, and give stakeholders are a fundamental aspect of having products and increasing competition in this segment. • EVRAZ strives to expand the share of value-added products. an opportunity to provide feedback. a constructive dialogue with our Increasing competition in the rail product segment. Excessive supply of slabs on the global market GRI 102–40 GRI 102–42 GRI 102–43 GRI 102–44 and intensified competition.
HR and employee Risks related to a lack of skills, a lack of succession • EVRAZ continuously monitors changes and compliance with applicable INTERNAL COMMUNICATION EVRAZ is proud to be one of the best employers in its regions CHANNELS risks planning, and reduced productivity due to labour labour laws and regulations. of operation. The Group is constantly improving its personnel unrest or low job satisfaction levels. • The Group implements a human capital development programme, EMPLOYEES • Corporate TV and newspaper. management practices to ensure best in-class working conditions. arranges regular meetings with trade union representatives and analyses • Internal portal and mobile app employee engagement levels and seeks to find the ways to their for employees. improvement. For more information about employee engagement see Our People section, • The EVRAZ Hotline. • EVRAZ has introduced a grading system and remuneration management p. 34 → • Annual staff engagement surveys. principles. In addition, the Group collaborates with universities • Interpersonal communication. and colleges to enhance educational programmes. • Group-wide events. Social Risks related to socio-economic instability • To mitigate these risks, the Group arranges and proactively supports and community in the regions where the Group operates, social, infrastructure, sport, educational, and cultural programmes EXTERNAL risks deteriorations in relations with local communities in the regions of operation. EVRAZ focuses on acting in shareholders’ best interests COMMUNICATION and authorities, and loss of the Group’s “social licence” • EVRAZ pays close attention to stakeholder engagement SHAREHOLDERS and works to build an experienced management team, and also CHANNELS to operate. and collaborations with cities and regional authorities. AND INVESTORS implements corporate governance best practices. • The media. • Social media. Climate change Risks related to climate change and extreme weather • EVRAZ implements energy efficiency projects that lead to lowering • Our official website. risks events that could lead to business disruptions, greenhouse gas emissions The Group supports global programmes EVRAZ generates value for its clients across the world • The EVRAZ Hotline. resource shortages, and damage to the supply chain, to reduce greenhouse gas emissions. CUSTOMERS by prioritising value-added products, offering better shipping • Annual reports. equipment, and reputation. • EVRAZ participates in drawing up greenhouse gas emission regulations terms, and running a client-orientated business model. in Russia. • Face-to-face communications Human rights Risks related to violations of human rights. • EVRAZ has adopted a Human Rights Policy and regularly informs with external stakeholders. risks employees about the principles set forth in the Policy and in the Group’s SUPPLIERS EVRAZ values its relationships with business partners and ensures Code of Business Conduct and runs whistleblowing hotlines. AND CONTRACTORS that its tenders are fully transparent. • ERVAZ ensures its compliance with all applicable laws and regulations. • The Group annually discloses a Modern Slavery Transparency Statement. EVRAZ endeavours to promote prosperity in the regions Quality Risks related to product quality. • The Group regularly monitors customer satisfaction levels and arranges LOCAL of operations and works to create healthier and more stable local meetings and feedback sessions with clients. COMMUNITIES communities by supporting social and economic development • Site visits to production assets are organized on a regular basis. programmes. • EVRAZ implements production and quality improvement programmes.
Digital A failure to proactively use IT opportunities to increase • Digital Transformation is a part of the Group’s IT strategy. EVRAZ is one of Russia’s largest taxpayers and employers effectiveness, the efficiency of business operations could result • EVRAZ continuously assesses and monitors information security risks, GOVERNMENT as well in a loss of competitive advantage and margins. and it implements mitigation measures upon completion of external and plays a valuable role for the country by providing AND REGULATORY construction and railway products for infrastructure. as effective, Information technology and information security risks assessments by an independent advisor. AUTHORITIES efficient have the potential to cause prolonged production • The Group conducts regular continuity testing for the most critically and continuous delays or shutdowns. important IT systems. IT service At the same time, increased digital transformation • Successful mitigation measures include launching the IT Security MEDIA EVRAZ’s proactive engagement with the media boosts the quality and the convergence of IT and operational technology Operation Centre, conducting security awareness training for employees and transparency of information about the Group. make companies more vulnerable. and effectively organising remote work for staff during the COVID-19 pandemic.
For more detailed information about the Group’s EVRAZ supports a number of industry organisations through risks, their impacts, and risk management actions INDUSTRY joint initiatives and proactively participates in conferences see the Principal Risks and Uncertainties section ORGANISATIONS of the 2020 Annual report. → and forums. Sustainability report 2020 20 21 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
CUSTOMER INTERACTION
In 2020 a prominent task for EVRAZ relations management, namely a specialized the closest stock of beams. In the future, FEEDBACK COLLECTION was the development of new initiatives subdivision – the Claims Work it is planned to gradually add other products as part of the Customer focus programme. Directorate – was created. to Steel Radar. We perform substantial work to constantly Client satisfaction survey Identified projects were divided improve our client services and to boost into areas such as digital and continuous EVRAZ conducted customer surveys In 2020, due to the COVID-19 pandemic, the efficacy of stakeholder engagement In addition to the external assessment improvements. The status of initiatives on narrowly specialized topics customer interaction events were temporarily mechanisms. In order to be able to do described above, EVRAZ also annually is discussed at regular meetings (for example, coke products), as well moved to an on-line mode or postponed this, we regularly collect feedback conducts client satisfaction surveys. with the participation of the Vice President, as a survey to assess the performance until 2021. Through the Zoom platform, from internal and external stakeholders This provides the Group with important Sales and Logistics on a weekly basis of the Claims Work Directorate. As a result a round table was organized with customers and use the results to fulfil the needs information on client satisfaction levels, as well as with the CEO and customers of the survey, a positive dynamics from Siberia and the Far East to discuss and expectations of our stakeholders. which can then be used to improve client (every two to three months). of customer satisfaction in terms of claims cooperation and overview markets We also organise events and upcoming services, and determine the key factors resolution was observed. of infrastructure steel products (76 projects, taking into account the feedback influencing client satisfaction and loyalty. In 2020 an online store was launched participants). Also, an annual meeting results. on the basis of EVRAZ Metall Inprom, In 2020 together with its clients with business partners was held on-line, The survey includes various research and due to EVRAZ’ active development and partners, the leading Russian steel which was attended by about 100 companies Our approach to feedback collection methods that are aimed at obtaining in the area of e-commerce, the E-Commerce trading companies, EVRAZ launched (around 280 people). In 2021 EVRAZ plans is divided into three areas: an extensive understanding of various Directorate was established. In 2021 Steel Radar, a resource that aggregates to organize a conference for customers • An annual reputational survey of external issues. During the research, experts analyse the Group will continue to work data on the availability of H-beams in all of the metalware product range and visits stakeholders (reputational audit). client service mechanisms and conduct on improving this sales channel in order warehouses of the traders participating of partner companies’ representatives • Customer satisfaction surveys. in-depth interviews with clients. to increase customer loyalty and satisfaction. in the project. The target audience to the mills, as well as to participate • Employee engagement surveys. of the online resource are mostly metal in the annual exhibition Metal-Expo In the reporting period, instead For more information on these, see Our People In 2020 changes occurred structures plants who are having transparent to establish closer relationships with existing section, p. 34. → of conducting a traditional annual customer in the organizational structure of customer and up-to-date information can choose customers and find new clients. satisfaction survey, EVRAZ decided to focus Reputational audit its efforts on implementing a project on transactional evaluation of satisfaction EVRAZ annually undergoes a third-party (after each purchase). The outcome of this reputational audit, which collates detailed project will be a dedicated digital product feedback on various aspects of the Group’s that will allow the Group to receive up-to- operations from main external stakeholders, date information from the client. The launch including state authorities, clients, of the product is planned for 2021. counterparties, and industry associations. This helps the Group to understand its image and determine areas in need of improvement.
External evaluation criteria
BUSINESS DEVELOPMENT SUCCESS FINANCIAL EFFICIENCY MANAGEMENT EFFICIENCY
QUALITY OF PRODUCTS AND SERVICES INFORMATIONAL TRANSPERENCY HR CAPACITY
ETHICAL BUSINESS CONDUCT ATTRACTIVE EMPLOYER SOCIAL RESPONSIBILITY Sustainability report 2020 22 23 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ AWARDS MEMBERSHIPS OF ASSOCIATIONS IN 2020 AND INSTITUTIONS
GRI 102–13 EVRAZ awards in 2020 The Group recognises the importance of contributing • The American Railway Engineering and Maintenance-of-Way to the attainment of sustainable development objectives Association (AREMA). Award/contest Title and collaborates with leading industry and business association • The Consumer Council on Operations of OJSC Russian Railways. The Russian Ministry of Industry and Trade awarded The Labour Courage medal awarded to four EVRAZ employees. and institutions. The Group actively supports sustainability • The Steel Construction Development Association (SCDA). EVRAZ metallurgists that have made significant The Honourable Metallurgist title conferred on eight EVRAZ employees. initiatives and events and engages in various roundtables • The Russian Union of Metal and Steel Suppliers. contributions to the industry. The Honourable Miner title conferred on four EVRAZ employees. and discussions. • The Canadian Chamber of Commerce. • The Saskatchewan Chamber of Commerce. The Governor of Sverdlovsk Oblast, Evgeny Kuivashev, For Services to the Motherland medals (II Degree). As of 2020, EVRAZ was a member of the following organisations: • The Canadian Manufacturers & Exporters organisation. presented state awards to three EVRAZ metallurgists. • The Russian Managers Association (AMR). • The Canadian Steel Producers Association. The Association of Directors for Communication Nominated best in the PR Video category for the Stronger than Steel film. • The Russian Union of Industrialists and Entrepreneurs (RSPP). • The American Iron and Steel Institute. and Corporate Media of Russia: “Best corporate video”. First place in the nomination Video on Occupational and Industrial Safety • The Association of Industrialists of the Mining and Metals • The Donors Forum. for the Choice is Yours project. Production Sector of Russia (AMROS). Competitive Procurement Leader Awards. Nominated for an award for the EVRAZ Marketplace online store. • The World Steel Association (WSA). And is an associate member of the following organisation: • The Russian Steel Association. • The Association of American Railroads. • The Non-Commercial Partnership National Association for Subsoil Use Auditing (NP NAEN). EVRAZ SUSTAINABILITY RATINGS IN 2020 EVRAZ sustainability ratings TAX LIABILITIES
GRI 207–1 GRI 207–2 Compliance with tax legislation reasonable care is applied in relation to all As part of the overall improvement of internal of the countries where the Group operates processes which could materially affect its tax control system, tax monitoring was is a key principle underlying EVRAZ’ approach compliance with tax obligations. The Group’s implemented in 2020 by the Management to taxation. EVRAZ has a low tolerance approach is to manage tax risks and tax Company, EvrazHolding. towards tax risk and seeks to minimise costs in a manner consistent with applicable
BBB 3.6 points the risk of dispute with the tax authorities regulatory requirements and with shareholders’ EVRAZ has a unified hotline through which of which CCC is the lowest and AAA In 2020 EVRAZ has been included by being open and transparent about its best long-term interests, taking into account any employee can report any situation tax affairs. Maintaining an open dialogue operational, economic and reputational factors. involving unethical or unlawful behavior, is the highest rating into the FTSE4Good Index Series, with a score with representatives of tax authorities including in the area of taxation. In 2020, there of 3.6 out of 5 at different levels allows EVRAZ to avoid EVRAZ has a robust process in place were no reports of violations of tax laws. adverse tax consequences and represents for identifying and addressing tax risks. an inherent aspect of the Group’s tax strategy. The register of tax risk is updated regularly GRI 207-3 and discussed with the Group’s CFO. EVRAZ plc has publicly available UK Tax The Audit Committee of the Board provides As a participant of the industry associations Strategy which is reviewed by the Board oversight in the review of tax risks on a regular such as the Russian Union of Industrialists of Directors on a regular basis. basis as part of the financial reporting and Entrepreneurs (RSPP) and Russian Steel, cycle. Information regarding taxes is verified EVRAZ can draw the attention of other The Group CFO has ultimate responsibility by independent auditors as part of the audit members to any topic in terms of taxes for tax affairs and delegates daily responsibility of the financial statements. The Service and make a targeted request to the Ministry to the Group’s internal tax departments, Solutions Center, an uniform service company of Finance or the Federal Tax Service. In 2020, which are present in most of the jurisdictions of EVRAZ, performs under contracts tax EVRAZ, in cooperation with other sectoral in which the Group operates. Local tax accounting for all the Group’s Russian entities companies, participated in discussions devoted 32.4 points 52 points departments are subordinate to local and interacts directly with the Russian tax to the issue of possible increase of the mineral of which 0 is the lowest ESG risk exposure CFOs. The tax departments are staffed authorities. The Service Solutions Center tax (iron ore and coal). out of 100 by qualified, experienced tax professionals works in cooperation with Tax Department and >40 is the highest ESG risk exposure who undertake the majority of tax activities of the Management Company, EvrazHolding, Also, in 2021 EVRAZ will continue to evaluate on a day-to-day basis. in accordance with the adopted internal available tax incentives in the framework rules and instructions, which are regularly of its investment projects and work towards EVRAZ seeks to reduce the level updated. Training and testing are also sustaining a high level of transparency in terms of tax risk arising from its operations as far provided for the employees of the Service of tax payments, creating and maintaining as is reasonably practical by ensuring Solutions Center. an optimal and effective business structure. Sustainability report 2020 24 25 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Taxes paid, US$ million, 20201
GRI 207–4
Indicator Russian Kazakhstan USA Canada Switzerland Czech United Cyprus Luxembourg Indicator Russian Kazakhstan USA Canada Switzerland Czech United Cyprus Luxembourg Federation Republic Kingdom Federation Republic Kingdom Name of legal EVRAZ Evraz EVRAZ Inc. EVRAZ East Metals EVRAZ Nikom, EVRAZ Actionfield Evraz Industry-related 54.96 - 46.80 ------entities (residents) Consolidated Caspian NA Inc. NA A.G. a.s. North Limited, Group S.A. and other taxes West-Siberian Steel, CF&I Steel Canada East Metals America Malvero or payments metallurgical EvrazMetall LP, EVRAZ Shipping plc Holdings to governments Plant, Kazakhstan East Metals Canada A.G. EVRAZ plc Limited, Tax on mining 1 7.69 ------EVRAZ North Holding Mastercroft Kachkanarsky America, Company Finance Property Tax 13.06 - 5.57 2.19 - - - - - Ore Mining LLC Ltd Limited, and Processing and others3 and others4 Nafkratos Other Taxes 24.20 - 41.23 ------Plant, Limited EVRAZ Significant 31 ------41 Nizhny Tagil uncertain tax Metallurgical positions Plant and others2 Main activities Steel Steel mill/ Steel Steel Trading Producer of Holding Holding Holding DIRECT ECONOMIC VALUE of the Group production Trading production production ferrovanadium companies companies/ companies and coal/ Dormant ore mining/ GENERATED AND DISTRIBUTED Trading Number 63,789 212 1,518 1,686 54 61 13 - 6 of employees (with an indication As the Group’s operations generate value some economic value is retained, which In 2020 the value generated by EVRAZ of the approach for its stakeholders, the wealth created is used to further develop the business. We amounted to US$ 9,782 million, the value to the calculation and the consequent allocation of revenue endeavour to boost the value generated distributed US$ 9,346 million, and the value of this indicator) by stakeholder group is demonstrated and distributed and hence increase retained US$ 436 million. In accordance Revenue 4,276 151 1,074 732 3,520 1 - - - by the direct economic value generated our contribution to society. For this reason, with GRI recommendations for Disclosure from sales to third and distributed. we strive to ensure that our actions 201–1, the audited IFRS Financial parties are taken with integrity when it comes Statements of the Group were used Revenue 2,624 1 2 61 118 79 - - - By examining the numbers presented to information disclosure. to prepare the table below. from intra-group in this section it can be seen that transactions with other tax jurisdictions 5 Profit / loss before 2,269 (19) (139) (382) 163 1 1,802 (61) 367 EVRAZ’s direct economic value generated and distributed , US$ million tax GRI 201–1 Tangible assets 3,869 37 639 714 244 9 - - - other than cash and cash Item Stakeholder 2020 equivalents Direct economic value generated 9,782 Income tax paid 342 - 1 (1) 1 - 197 - - Revenue from the sale of goods 9,514 Income tax (358) - (2) 3 (5) - (213) (2) - Revenue from providing services 240 accrued on profit/ A wide variety of stakeholders loss Revenue from financial investments 6 Total employee 679 - 134 127 13 2 3 - 1 Other operating income 22 remuneration Economic value distributed (9,346) Taxes withheld (319) - (40) (41) (1) (1) - - - and paid Operating expenses Suppliers and contractors (6,244) on behalf Wages and other payments to employees Employees (1,320) of employees Payments to providers of capital (1,172)
1. Some of the indicators disclosed in the table do not coincide with the IFRS data, since the methodology for calculating these indicators is different payments to shareholders Shareholders and investors (872) 2. Aktiv-Media, ATP Yuzhkuzbassugol, AVT-Ural, Centr Servisnykh Resheniy, Centralnaya Obogatitelnaya Fabrika Abashevskaya, Centralnaya Obogatitelnaya Fabrika payments to creditors (300) Kuznetskaya, EVRAZ Metall Inprom, EVRAZ Uzlovaya, EVRAZ Vanady Tula, EVRAZ Yuzhny Stan, Evrazenergotrans, EvrazHolding Finance, EvrazHolding LLC, EvrazService, Evraztekhnika, Ferro-Building, Gurievsky rudnik, Industrialnaya Vostochno-Evropeiskaya company, Kachkanarskaya teplosnabzhauschaya company, Payments to the government (579) Kuznetskpogruztrans, Kuznetskteplosbyt, Managing Company EVRAZ Mezhdurechensk, Metallenergofinance, Metservice, Mezhegeyugol Coal Company, Mine Government authorities Abashevskaya, Mine Alardinskaya, Mine Esaulskaya, Mine Osinnikovskaya, Mine Uskovskaya, Mining Metallurgical Company “Timir”, Montazhnik Raspadskoy, including income tax expenses (579) MU-Invest, Nizhny Tagil Telecompany Telecon, Novokuznetskmetallopttorg, Olzherasskoye shakhtoprokhodcheskoye upravlenie, Osinnikovsky remontno-mekhanichesky zavod, Promuglepoject, Raspadskaya, Raspadskaya Coal Company, Raspadskaya Preparation Plant, Raspadskaya-Koksovaya, Razrez Raspadskiy, Regional Media Community investments Local communities (31) Company, Sibir-VK, Sibmetinvest, Tagilteplosbyt, Tomusinskoye pogruzochno-transportnoye upravlenie, Trade Company EvrazHolding, TV-Most, TVN, United Coal Economic value retained 436 Company Yuzhkuzbassugol, Upravlenie po montazhu, demontazhu i remontu gornoshakhtnogo oborudovaniya, Vtorresurs-Pererabotka Yuzhno-Kuzbasskoye geologorazvedochnoye upravlenie 3. Colorado and Wyoming Railway Company, EVRAZ Claymont Steel, Inc., EVRAZ Trade NA LLC, Fremont County Irrigating Ditch Co., General Scrap Inc., New CF&I Inc., 5. Oregon Ferroalloy Partners, Oregon Steel Mills Processing Inc., Palmer North America LLC, Union Ditch and Water Co. Information from the audited IFRS Financial Statements of the Group was used to prepare Disclosure 201–1 in accordance with the GRI recommendation. Data 4. EVRAZ Materials Recycling Inc., EVRAZ Recycling, EVRAZ Wasco Pipe Protection Corporation, Genalta Recycling Inc., Kar-basher Manitoba Ltd, King Crusher Inc. are presented on an accrual basis. Sustainability report 2020 26 27 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Our people OUR APPROACH for a Better Future At EVRAZ we are always seeking so that it is accessible for everyone. We exclusive offers from various companies to improve the professional and personal endeavour to always improve our learning as part of our non-financial motivation skills of our employees. We believe that programmes, and this year we focused activities. We always seek to provide more by doing this we invest in the Group’s on improving various programmes benefits than the law requires. future achievements. Hence it is of great and courses, such as the TOP 1000 2020 highlights Material topics 2020 – importance for us to create a working programme and the New EVRAZ’s The Group endeavours to ensure key events environment where our employees can fully Leaders programme. We also encourage that it does its utmost to comply Employment realise their potential. our employees to participate in scientific with international legislation in the field 69,699 conferences and industry contests, of respect for human rights. To ensure • The Target Remuneration System With this in mind, the Group continued which is beneficial both for employees compliance with human rights standards Employees at the end of the year Training and education was implemented in most EVRAZ to work actively in the following key areas and the Group. we are governed by corporate documents divisions. in the reporting period: such as the Code of Ethics and the Code Diversity and equal opportunities • The recruitment system was • implementing a Target Remuneration Also, special attention was paid of Business Conduct. In order to reduce 9.7% enhanced and made more System. in the reporting period to developing the risk of legal violations the treatment transparent. • building HR and enhancing staff the HR brand. We strive to become of our workers is monitored by public Employee turnover rate • A new hotline and other channels recruitment processes. the best employer in the regions organisations, including trade unions of communication were developed • continuously improving the KPIs system. of our operation. We work very closely active in the Group’s operations, in wake of COVID-19 and to generally • enrolling employees on various with universities, as this is our main source as well as regional and federal trade improve the feedback system. professional courses and programmes. of attracting new talents. We also develop union associations and representatives • Educational programmes were • developing Human Rights Policies. and implement programmes to engage from Russia’s Presidential Council for Civil upgraded and new educational • regularly collecting feedback via various young specialists. Society and Human Rights. projects launched. communication channels. Global Sustainable Development Goals • A pilot project on healthcare, As a socially responsible company we strive The Group holds its partners to equally launched at the Urals division in 2019, We always seek to improve our employees’ to widen the range of financial and non- high human rights and business ethics was transformed into a programme knowledge in the professional field financial benefits we provide for our standards. EVRAZ policies require that all that enables all healthcare processes and at personal level. EVRAZ’s business employees. We are continuously improving contracts with partners contain sections to be managed. system (BSE) envisages continuous learning working conditions, provide our people governing the prevention of corruption and staff development. We incorporate with healthcare coverage, and implement and human trafficking. learning programmes into our system programmes granting our employees
Organisational structure of EVRAZ HR management system
VICE-PRESIDENT OF HUMAN RESOURCES
Corporate Economics Recruitment Personnel Training and Social Policy and Labour and Staff and Labour Engagement Directorate Organisation Adaptation Relations Directorate Directorate Directorate Directorate
HR departments at each Group company Sustainability report 2020 28 29 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
PERSONNEL PROFILE STAFF RECRUITMENT HEADCOUNT AND REDUCTION
As of 31 December 2020 EVRAZ had a total of 69,699 employees. Compared to 2019, the Group saw a more than 2% decline in headcount. EVRAZ pays particular attention to identifying and addressing human rights risks, including those related to recruitment and working conditions. We embrace the principle of equal opportunity when hiring and prohibit all forms of discrimination. Staff recruitment is conducted in full compliance with the laws of the countries in which the Group operates, including respective regulations governing Number of employees, Number of employees, 31 December Breakdown of employees and top as of 31 December, 2018–20201 2020, broken down by segments, management by age, 31 December labour protection, minimum wage levels, annual paid and parental leave, collective bargaining agreements, health insurance, pensions, people 2020, % and personal data protection.
EVRAZ adheres to the following recruitment principles: 2020 69,699
<20 0.2 2019 71,215 20–29 13.7 30–39 30.2 40–49 30.4 50–59 20.2 2018 69,712 >60 5.3 SAFETY RESPECT PERFORMANCE CUSTOMER FOCUS EFFECTIVE FOR PEOPLE AND RESPONSIBILITY TEAMWORK Steel segment 46,006 Coal segment 15,578 Steel, North America segment 3,278 Other 4,837 EMPLOYEE TURNOVER
Overall employee turnover Overall and voluntary employee RECRUITMENT Employee turnover levels in the past three broken down by segments, turnover broken down by segments, years fell across all segments of the Group. 2018–2020, % 2020, % We try to recruit most employees to hiring for permanent positions that and some others. Fixed-term contracts GRI 401–1 on permanent contracts. However, suit their qualifications and educational are used in specific cases, such as university from time to time fixed-term employment backgrounds. Remuneration is the same students undergoing practical training, DIVERSITY 12.7 contracts are necessary. Employees for both fixed-term and permanent internships, etc. 11.3 19.9 20.2 10.9 working under such contracts employees, with the exception of university 10.3 We see diversity as making a positive 17.1 are in a favourable position when it comes students undergoing practical training 8.6 14.3 8.2 contribution to business and cultural 14.1 13.8 12.7 development. Our goal is to ensure that 11.3 9.8 10.9 5.2 all employees receive equal protection, 8.6 9.5 4.9 irrespective of their race, nationality, 2020 Voluntary 2019 Overall gender, age, sexual orientation, religion, EVRAZ has a mentoring programme, 2018 Case study political or other opinion, national or social as well as a Buddy programme, introduced Steel Coal Steel, Other Steel Coal Steel, Other origin, property, birth, or other status. segment segment North segment segment North EVRAZ redesigns Hunt-Flow system in 2019, which was updated in 2020 due America America to transitioning to an online format. segment segment We believe that diversity fosters employee In 2020 we paid special attention to boosting the efficiency of HR processes. In addition, we implemented the Buddy engagement and development, as it The Hunt-Flow system was redesigned, and we automated a number of routine mobile app, which allows new joiners to stay nurtures different ideas and approaches processes. In the Hunt-Flow system, recruiters can see that a candidate is already in touch with supervisors, and also helps Breakdown Diversity of employees, 2020, by gender, within the business. at the interview stage, which eliminates the possibility of different departments keep track of tasks that need to be done, of employees by region, broken down by senior management hiring the same professional. Also, recruiters from different departments are able useful information, requirements, 2020, % and employees, % to exchange useful information in cases when a candidate is more suitable and company rules. There is also a Buddy for an open position that is not the same as the one originally applied for. app available for mentors, which enables GRI 405–1 them to conveniently track their student’s
74.6 25.4 activity. Senior management 402 people
72.5 27.5 Employees 69,297 people Russia and CIS 95.1 Men North America 4.7 Women Europe 0.2
1. The numbers in this section are differing from Annual Report 2020 due to headcount recalculation. Sustainability report 2020 30 31 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
WORKING WITH YOUNG SPECIALISTS LEARNING AND DEVELOPMENT
GRI 404–2
The Group holds various events and technical conferences, professional Targeted Enrolment was implemented The development of our people is a top Ural, Coal, and Vanadium divisions. In 2020 the topics ambitious goal-setting, effective and has programmes in place to attract skills competitions (1,061 employees took for the first time, in cooperation priority for EVRAZ. The Group has over 42 thousand employees were trained, management, human capital development, young talent. We make sure that part in the Siberia division), and young with SibSIU. a multi-level system of human resource and the plan is to train a further business-processes enhancement, soft- the adaptation process is as effective leader competitions. management in place, geared towards 15 thousand. skills, and other skills that will facilitate and convenient as possible. We provide As part of our work with schoolchildren we: improving the engineering and personal the Group’s growth and development. internship opportunities for students, Recruitment of graduates of educational • Organise vocational excursions skills of employees, and fostering The New EVRAZ Leaders programme both at the Management Company institutions, Siberia EVRAZ to structural subdivisions, museums, collaboration with educational institutions. was launched in February 2020. The course In 2020 the Top 1000 corporate and at production facilities. and exhibition centres, and training consists of five modules, and focuses management programme was launched, workshops at Urals EVRAZ. on how digital solutions can be harnessed to augment the Top 300 programme, 318 In 2020 a total of 594 graduates 2020 • Provide equipment for mathematics, Average number of training hours per to improve efficiency. Overall, 70 people and is aimed at managing employees year per employee, 2018–2020 were recruited to the Urals and Siberia physics, chemistry, and computer science did the course, which was in the format of lower positions. Its participants received divisions, including people with a higher 2019 220 courses, as well as laboratories. of project work, and with each module guidance on such management issues education and graduates of basic • Participate in various joint cultural covering a specific topic. The team’s task as target-setting performance dialogues, 2020 72.5 educational institutions. and sporting events. was to create a project with a monetary feedback, delegation, and the development 2018 162 effect of RUB 80 to 120 million of subordinates. In the reporting period 236 EVRAZ holds adaptation and internship Before the introduction of anti- 2019 67.3 and a payback period of no more than employees participated in the programme. programmes for young professionals: epidemiological measures in the 2020 a year. incentive payments, scholarships, EVRAZ supports educational institutions. school year, around 300 students took part The programme involved the Top and a comprehensive evaluation We conduct internships of all kinds in excursions organised by the Group. 2018 64.0 In 2020 EVRAZ continued with its 300 alumni as teachers and mentors. of young professionals was conducted. and offer career guidance tests Top 300 corporate management The programme goal is to support The Internships for Young Professionals and advice for students. In the reporting programme, and a total of 101 people the sustainable development of EVRAZ’s programme covered 123 people year over RUB 54 million was invested Risk management training for employees took part in the third wave, which began BSE in divisions and to foster in 2020. EVRAZ engages young people in the development of educational was conducted this year. The course covers in September 2020 and will end in June a management mentoring culture among in the following activities: scientific institutions. In 2020 the federal programme such topics as occupational safety, human 2021. Each programme participant TOP-300 executives. factors, and dynamic risk assessments. is mentored by one of the Group’s senior The training was conducted in the Siberia, executives. The programme covered
REDUCTION Average number of training hours Average number of training hours per year per employee, by employee per year per employee, by gender, The Group is continuously looking creating temporary jobs, transferring In addition, we seek to expand the range Case study categories, 2018–2020 2018–2020 to enhance its performance, which employees to other jobs (with their of people that are granted priority rights occasionally entails having to implement consent), and elaborating a social to retain employment beyond categories EVRAZ receives GRI 404–1 staff reduction measures. As a socially adaptation programme for workers of employees specified under Russian awards for Personnel 13.3 82.0 responsible company we deal with the participation of a trade union. law, including: single fathers, people 2020 2020 Development 72.8 47.1 with personnel dismissals in an appropriate with disabilities, and people whose spouse manner, guided by an internal document As part of our work with trade unions is retired or unemployed. 15.0 72.0 In 2020 EVRAZ NTMK 2019 2019 67.5 adopted in 2012 called the Socially we insert detailed employment- and EVRAZ KGOK received 54.9 Responsible Layoff Programme. related sections in collective bargaining We endeavour to do our best to retain awards in the category Personnel 9.0 71.6 The provisions of this document agreements and industry tariff agreements. production staff. When downsizing, 2018 2018 Development in the 17th annual 64.4 44.7 are enshrined in EVRAZ collective All decisions vis-à-vis staff reductions the Group offers employees vacant metals and mining industry contest, agreements. In addition, the Group’s are discussed with a trade union positions and, if necessary, provides held by the Russian Metallurgists Senior management Men Employees Women collective agreements and industry tariff organisation. Furthermore, in compliance training opportunities for new professions. Association and the Central agreements contain detailed employment- with Russian law, the following categories If needed, EVRAZ organises employee Council of the Russian Mining related sections. of employees have additional guarantees relocations to other Group facilities, and Metallurgical Union. The Group against being dismissed as a result working with employment centres provides retraining and professional Special attention is paid to students EVRAZ team took part in the national In cases where temporary layoffs occur, of downsizing measures: single mothers, in the regions where it operates. EVRAZ development programmes for its and junior specialists. In 2020 over 240 championship WorldSkills Hi-Tech 2020, our collective bargaining agreements parents who are the sole breadwinner also provides training and financial employees, compensates them students did internships at EVRAZ, which was held in a partially remote format. have clearly defined, specific measures for a child with a disability or for a child assistance to discharged employees who for the cost of higher education and over half of these are already working The team, consisting of EVRAZ ZSMK to support workers and preserve jobs: younger than three years, and pregnant are considering starting their own business. for in-demand professions, for the Group. Junior specialists participate and EVRAZ NTMK employees, competed changing work schedules, introducing women. and encourages their participation in scientific and technical conferences, across multiple skillsets and won seven shorter workdays or work weeks, in scientific conferences. professional skill competitions, and in all- medals: four golds, one silver, and two Russian competitions. bronzes, including the employees aged over 50 and junior categories. Sustainability report 2020 32 33 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
The project will now be expanded. doctors and medical professionals. Based divisions. Due to changes in the law MOTIVATION Also, at the end of the year, in the wake on the results of medical examinations on remote working we are also elaborating of the COVID-19 pandemic, special post- we form risk groups. Employees who a regulation on working remotely, rehabilitation programmes were introduced fall into these risk groups are provided and there are plans to introduce respective at the sanatoriums Linevka and Green with special treatment. This programme will compensation for costs incurred as a result EVRAZ strives to provide optimum working conditions and opportunities for professional development. We approach each employee Cape. run until March 2021, and there are plans of working remotely. individually, and continuously review and revise our motivation system. to extend it across all divisions. We completed preparatory work to sign an agreement with Alfa-Insurance. Now Changes were made to our regulations all employees have regular medical covering catering facilities. As part of social FINANCIAL MOTIVATION examinations and can consult digital support, we expanded cafeterias in two
EVRAZ endeavours to look beyond amounts and growth trends depend lower than shop manager. The grading compliance with minimum wage on the performance of the employee, system and remuneration management requirements, with a view to ensuring that team, and department. This ensures a focus principles have enhanced the transparency PERFORMANCE MANAGEMENT staff are fully compensated for their efforts. on continuous process improvement of employee remuneration. In 2020 We also ensure that the remuneration and helps achieve the ambitious goals the grading system was expanded system at Group enterprises is transparent that have been set for the department to include certain Coal segment The staff motivation system at EVRAZ This year EVRAZ plans to update As part of our HR strategy, in 2020 EVRAZ and easily understandable for employees. and enterprise as a whole. departments. includes KPIs to assess staff productivity. the personnel assessment system so that implemented an HR-analytics project The KPI system is continuously each worker’s accomplishments are viewed to enable the heads of shops and mine In 2020 EVRAZ continued to implement One Group priority is to ensure that reviewed and refined. Technical KPIs individually, rather than as part of a certain directors to monitor their departments’ HR a Target Remuneration System in various the Target Remuneration System are in line with best industry practices position or group. This assessment will metrics and to ascertain how their actions enterprises, including seven shops is comprehensible for everyone. and are monitored by the Group’s be held every year. could have an impact on certain indicators. at EVRAZ ZSMK, four shops at EVRAZ Therefore, multiple communication events CEO, while corresponding KPI targets NTMK, two shops at EVRAZ KGOK, are in operation at EVRAZ, including are included in management scorecards, and EVRAZ Vanady Tula and Evraz in-person or Zoom conferences, shift Ratios of EVRAZ standard entry level down to the level of shop managers. Tekhnika. Over 43,500 employees meetings, website and newspaper wage vs local minimum wage, 2020 were included. In 2020, the Group publications, the distribution of printed GRI 202–1 exceeded its plan for all shops of the Urals brochures about the Target Remuneration and Siberia divisions in relation System, and videos. Employees can submit Kemerovo region 1.6 to the Target Remuneration System. questions about the system via a hotline Sverdlovsk region 2.1 or app, by e-mail, through a portal or call- Tuva Republic 1.3 The aim of the project is to elaborate centre, or by contacting the HR partner. Tula region 2.2 and implement a uniform set of fair Kostanay region 2.9 Czech Republic 1.0 and transparent rules and principles The Group continued its work within Alberta 1.8 for setting remuneration levels across a grading programme and ambitious Saskatchewan 2.2 the Group’s enterprises, and to match goal-setting system, created for paying Oregon 1.3 1.4 fixed and variable pay so that monthly bonuses to employees graded Colorado
NON-FINANCIAL INCENTIVES
GRI 401–2
The non-financial compensation Apart from current employees, EVRAZ collective bargaining agreements package offered to EVRAZ employees some categories qualify for non-financial also prescribe additional leave exceeds minimum statutory requirements assistance from EVRAZ, including former for childbirth, weddings, and the funerals and contributes to their total remuneration. employees that worked for 10 or more of close relatives. There is also The package includes: years at the Group. Special assistance a programme in place that provides • voluntary health insurance. is provided to employees that have financial assistance to employees • additional voluntary insurance against become members of public organisations, in challenging life circumstances. accidents at work. and young professionals. The Group • a state pension programme. congratulates employees and their families In 2020 many social programmes • a programme that offsets part of interest on holiday occasions, and organises were put on hold due to the COVID-19 paid on mortgages. cultural, entertainment, and sporting events pandemic, and the whole focus switched • free wellness leave vouchers in the regions where it operates. to people’s health. In 2020 we launched for employees and their families. the pilot project Health Management TOP-300, together with a medical centre. Sustainability report 2020 34 35 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
INTERACTION WITH EMPLOYEES PERFORMANCE AS AN EMPLOYER
EVRAZ understands the value of receiving networks and web conferences, In 2020, two non-executive directors took EVRAZ takes the issue of social at the 17th annual metals and mining This year EVRAZ began planning its feedback and addressing employee as well as Q&A and townhall meetings part in meetings dedicated to raising performance management very seriously, industry contest, held by the Russian employer brand development strategy. concerns across the organisation, with members of senior management. awareness surrounding prevalent trends and annually participates in contests that Metallurgists Association and the Central We began creating a communications and regularly interacts with employees General meetings, in addition and concerns. confirm its status as a socially responsible Council of the Russian Mining campaign and specifying our actions via the corporate intranet and website, to satisfaction and engagement surveys, employer. In 2020 the Group won awards and Metallurgical Union. for 2021 in pursuit of becoming the best corporate publications, social are regularly held to identify key issues. in the Personnel Development category recruiter in the regions where we operate.
WORK WITH TRADE UNIONS EVRAZ HOTLINE
GRI 102–41 GRI 407–1 One of the main channels for employee or sensitive cases are reviewed by members For details see section Whistleblowing hotline of this feedback at EVRAZ is an anonymous of the Hotline Committee, which Report, p. 15 →. EVRAZ seeks to establish long-term of conflicts or difficult negotiations, This year saw extensions to the Coal 24-hour hotline. The Hotline helps track includes the vice president for corporate collective bargaining agreements the head office intervenes as part of crisis Industry and Steel Industry Tariff employee satisfaction levels and records communications, the internal audit This year an extra hotline was set up, with trade unions. We interact with trade management procedures. Agreements in line with relevant Russian incidents at the Group’s production director, and the internal and external in the wake of the COVID-19 pandemic. unions by signing collective bargaining legislation, with the active participation facilities. Queries are processed communications director. Random The Steel and Coal segments operate 24/7 agreements, which covered 88% 2020 saw the implementation of a Target of the Group. with the help of an IT system, quality control reviews are carried out corporate hotlines, which employees can of employees in 2020. Furthermore, Remuneration System. Since all and the process is governed by the EVRAZ on a quarterly basis. refer to with their questions and issues. EVRAZ’s Social Production Council changes in working conditions must In 2020 there were no conflicts or collective Hotline Statutes. Enquiries are broken down EVRAZ North America employs external is attended by chairmen of trade union be reflected in collective agreements, labour disputes recorded at the Group’s by the responsible business unit (HSE, In 2020 the hotline received 1,096 requests. providers for this purpose. committees, who seek to foster constructive we have been negotiating with trade Russian operating facilities. All changes HR, Security, etc.), and then investigated The most frequent issues related to labour and effective dialogue. unions for all enterprises changes and updates to collective agreements and addressed. All employee grievances relations, including the quality of labour related to the implementation of Target were constructive, and in strict accordance are investigated by the internal audit relations (496), public services (151), The Group has in place a three-level Remuneration System. This year with the law and the principles of social department, and difficult, contentious, and labour compensation (69). system of relations with trade unions, which we negotiated with three trade unions, partnership. This year the Council takes in federal, regional, and enterprise and changes were made to all collective of Social Work met twice; both meetings level. The head office is responsible bargaining agreements. discussed the implementation of the Target COVID-19 for the federal and regional levels. In cases Remuneration System. The absolute priority of the Group HR functions conduct regular employee Most survey respondents also indicated is the life and health of its employees, surveys in order to learn about employees’ that EVRAZ is doing an excellent job EMPLOYEE ENGAGEMENT and in this regard measures were taken experiences of working remotely. of organising remote work. in 2020 to protect personnel The surveys determined that one from COVID-19. of the main factors helping employees Over 4,500 employees are currently In order to identify main employee Based on the survey results, companywide events are held annually, based remain engaged and motivated working remotely. All staff remuneration engagement trends, management closely improvement plans were announced. on the survey results. The working hours of office staff is knowing they are doing an important plans have been implemented, including reviews engagement data from surveys. Raising employee awareness surrounding were altered in order to reduce job and generating value for the Group. the payment of annual bonuses based The We are Together employee engagement Group activities, including vis-à-vis short- In addition, the Coal segment the number of mass gatherings. EVRAZ on 2019 results and salary indexation. survey was held annually until 2019, when and long-term goals, development plans, conducts an annual satisfaction pulse- moved the majority of office employees it was decided that it would be held once and working conditions, were identified survey on social and living conditions to a remote working format. New laptops every two years. The fourth We are Together as the main areas for further development. at the enterprise. A special mobile app were purchased and additional equipment survey in 2019 outlined the need to increase Focus groups are held, and after each has been developed, where various and software installed, which facilitate employee awareness surrounding what meeting an enterprise elaborates a plan questionnaires are posted. efficient and safe remote working Case study is happening at the Group. to eliminate problem areas. Numerous conditions. All meetings are now held remotely using modern conference EVRAZ creates app to prevent spread of COVID-19 and video call applications, and all mass business, sporting, and entertainment EVRAZ created an app, called Antivirus, to promptly alert employees of possible corporate events were postponed exposure to the COVID-19 virus. The app is based on the Stop Corona app, Case study or cancelled. Canteen schedules which was developed jointly by Accenture and the Austrian Red Cross to more were altered, and the number and format effectively identify symptoms of the novel coronavirus infection. EVRAZ introduces multifunctional employee feedback app of shift meetings at production facilities are currently being optimised. Antivirus will offer a checklist developed by EVRAZ in case of COVID-19 infection, as well as general recommendations based on Rospotrebnadzor requirements. In October 2020 EVRAZ introduced a multifunctional app, RUK EKO, whose main purpose is to optimise the process The app will anonymously and automatically exchange data with employees’ of collecting feedback from employees. This is done through the Survey function, which enables pulse-surveys Also, EVRAZ has been providing devices located nearby (via Bluetooth). If an employee suspects they might have to be conveniently conducted and feedback to be promptly collected. staff and their families with necessary contracted COVID-19, all their contacts can be alerted via the app and instructed psychological assistance during the COVID- to self-isolate – this will help break the chain of virus transmission. Additional functions of the app include Idea Factory, which allows proposals on how to improve working conditions 19 pandemic. EVRAZ carefully assesses to be submitted; and News, where the latest Group news get posted. Employees receive PUSH-notifications whenever news, potential mental health impacts related deadlines for applying for trips, information about important events, etc. are posted. to the preventative measures being For more information on impact of COVID-19 on the Group and our response measures, please, see, undertaken as a result of the pandemic. the information in Annual Report: https://ar2020.evraz.com/en/strategic-report/impact-of-covid-19. → Sustainability report 2020 36 37 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Breakdown of permanent and temporary Breakdown of full- and part-time HUMAN RIGHTS staff by gender, 2020, % employees by gender, 2020, %
GRI 102–8
Respecting human rights has always that pose risks in this area. We publish and potential employees are made 37.1 62.9 13.6 86.4 During the reporting year, EVRAZ been our core principle. EVRAZ does the Modern Slavery Transparency based only on their professional skills Temporary Part-time considered boardroom diversity, especially staff 2,699 staff 804 not tolerate discrimination of any kind, Statement annually, in accordance and qualities, experience, and abilities. in view of the need to appoint up to two whether it be based on gender, social with the requirements of the UK Modern Furthermore, job positions are allocated new independent non-executive directors status or class, or any other factors Slavery Act. Based on the results of risk to people with disabilities to ensure that 73.7 26.3 73.0 27.0 to replace those standing down having not directly related to an employee’s assessments we conduct due diligences they are provided with job opportunities. Permanent Full-time served terms of nine years. The Board staff 67,000 staff 68,895 professional qualities. It is crucial for us of our suppliers. We also aim to ensure In total, 241 positions have been hopes to be able to appoint another female to comply with international human that all high-risk suppliers are familiar allocated for people with disabilities Men Men director and a director who will broaden Women Women rights laws, hence we have corporate with respective obligations to comply and 285 are currently occupied, therefore the Board’s ethnic diversity. documents ensuring this compliance, such with legal requirements to eliminate the staffing level here is 118%. However, as the Code of Business Conduct. These modern slavery in their businesses some divisions are in the process of filling documents guarantee equal employment and to self-report breaches to us. quotas, and we are now working to fill opportunities for everyone. Our employees the remaining positions. are provided with freedom of association In 2020 EVRAZ paid special attention and collective bargaining. Child labour, to the issue of human rights. In May The low percentage of women within forced labour, human trafficking, and other 2020 we elaborated and published two the employee structure is due to legislative OUTLOOK FOR 2021 forms of slavery (known as modern documents on human rights: the Human restrictions related to women working slavery) are strictly prohibited at all EVRAZ Rights Policy and Diversity and Inclusion in hazardous industries. The bulk AND THE MIDTERM subsidiaries, including their suppliers. Policy. of permanent employees (73.7%) are men, while most temporary employees (62.9%) To better address the issue of modern At EVRAZ we are committed to creating are women – this is because when slavery, we conduct risk assessments and supporting a work environment that women go on maternity leave their posts Learning and development Performance as an employer Other goals for 2021 in this area include: to determine the aspects of our business is free from discrimination of any kind. are occupied by other women working • continuing to implement the grading and our suppliers and subcontractors All work-related decisions on current under temporary employment contracts. The Group is planning to launch EVRAZ also has plans to create system in the Coal segment. LMS – the Learning Management an employer brand. In 2021 we will run • completing the transition of all divisions System. The system will incorporate all a communication campaign and outline to the unified remuneration system. types of trainings and development our development strategy. courses and aim to make the learning Social policy Case study and development process transparent Motivation and accessible for all personnel, EVRAZ will continue to roll out its Human rights from managers to employees. In 2021 EVRAZ is planning an individual programme to promote healthy lifestyles review of employee salaries, which will and health care in the Urals division, In the reporting year we elaborated and published two documents, the Human Rights and the Diversity and Inclusion In 2021 EVRAZ will continue with efforts include improving the transparency and extend this programme to the Siberia policies, which were adopted by the Board of Directors on 16 April 2020. to develop its internal coaches, as well and reliability of communications division. as standard competency and skill between the employee and the employer The Human Rights Policy conforms with recommendations set forth in international documents and standards granting development programmes. and increasing the transparency Other goals for 2021 in this area include: fundamental rights to all people, including The Universal Declaration of Human Rights and The International Covenant of the relationship between performance • amending the strategy for collective on Civil and Political Rights. The Diversity and Inclusion Policy was elaborated in accordance with international guidelines and pay rises. bargaining agreements. and standards, which address diversity and inclusion issues; these include The Universal Declaration on Cultural Diversity • unifying social business processes and The United Nations Global Compact. and pooling them into one portal.
EVRAZ’s employees can expect to be treated with respect, enjoy the safest working conditions possible, receive support to help develop their competencies and skills, have open and constructive discussions about the results of their work, and recognition and respective performance-based financial rewards.
EVRAZ understands the benefit of diversity and inclusion in the Group. The Diversity and Inclusion Policy embraces key principles in the following areas: • Board diversity • recruitment and employment • the rights of disabled people • empowering women • employee development and training • zero tolerance towards bullying and harassment
We require that our suppliers and contractors run their businesses in such a way that they respect the values and principles of these policies. Sustainability report 2020 38 39 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Evolving health, safety, HEALTH, SAFETY, and environment system AND ENVIRONMENTAL GOVERNANCE GRI 403–3 GRI 303-1 GRI 304-1 GRI 306-1 GRI 103
for a Better Future EVRAZ is totally committed to building Each quarter the Board of Directors assesses and is subordinate to the HSE Management safe working conditions for all employees HSE reports across the whole Group. In 2010 Committee. Please see below the EVRAZ HSE and a favourable living environment the HSE Committee of the Board of Directors management structure. for generations to come. Health, safety, was established to review all HSE strategies and environmental (HSE) issues are at the heart and to assess the effects of the Group’s In accordance with the EVRAZ HSE Policy, 2020 highlights Material topics Global Sustainable of all EVRAZ operations. HSE management HS initiatives on key stakeholder groups managers at all Group levels are responsible is an integral part of our business, and EVRAZ’s reputation. Issues addressed for HS compliance. All EVRAZ facilities report Development from strategic decision-making to operational by this supervisory body include an in-depth on their performance to the corporate HSE Occupational LTIFR Health and Safety activities. EVRAZ applies a structured analysis of HSE performance at all EVRAZ function on a monthly, quarterly, and annual 1.58 Goals management approach, and is continuously divisions, and making recommendations basis. per 1 million hours1 striving to improve processes, management on required remedial actions and applying best Water approaches, and control systems. The Group’s practices. The HSE Committee of the Board The Group implements a four-phase HSE Occupational Health and Safety (OHS) of Directors meets once every six months. management process: predicting, developing, Effluents management system is constantly being monitoring, and analysis. To monitor 102.7% and waste enhanced, in order to ensure that best In 2018, in order to boost the efficiency the effectiveness of HS measures, the EVRAZ non-mining waste recycling international safety practices are implemented. of the OHS management system and to build OHS management system is audited and reuse rate Emissions a strong safety culture, an HSE Management on a regular basis by our own management All Group activities are underpinned Committee was set up, to review HS issues and by independent auditors. Energy by the following HS principles: at an executive level on a monthly basis. • All incidents are preventable. The committee conducts detailed reviews To ensure that our HSE principles 1.97 • Work must not start if it cannot be safely of investigation results and analyses HS are implemented we perform the following Biodiversity tCO2e per tonne executed. statistical data. The EVRAZ CEO is Head actions, which form the core of our OHS • EVRAZ managers at all levels are directly of the HSE Management Committee, and all management system: Environmental of steel cast GHG intensity rate responsible for providing the required level EVRAZ Vice Presidents are members of this • Developing new initiatives to continually compliance of HSE – not only to employees, but also body. improve HSE performance. to contractors and guests at Group facilities. • Considering stakeholder opinions, submitting 206.2 million m3 • EVRAZ managers at all levels should set In 2020 it became customary to hold HSE HSE claims to contractors, and promoting an example of being compliant with HSE Committee meetings at a divisional level. respective compliance. water consumption standards and rules. These committees are chaired by divisional vice • Elaborating, measuring, and analysing HSE • All EVRAZ employees are directly responsible presidents. indicators and assessing how they meet both for complying with HSE standards and rules. external and internal regulations. The EVRAZ CEO is responsible for the general • Striving to ensure a free and transparent flow GRI 403–1 GRI 403–4 1. Excluding fatalities and data on contractors. supervision of HS activity and approves of information at all corporate levels, as well The management approach entails corporate targets in the HS field. He is also as with contractors and stakeholders. safeguarding the health and safety of EVRAZ a member of the HSE Committee of the Board • Implementing industry international best staff by fully involving top management of Directors. The HSE Vice President practices to ensure an appropriate level of HS and senior executives in HS process. is supervised by the EVRAZ CEO management. • Complying with domestic legislation as well as the laws of the regions where we operate.
EVRAZ HSE management structure
HSE COMMITTEE OF THE BOARD OF DIRECTORS EVRAZ plc Board of Directors
EVRAZ CEO
HSE MANAGEMENT COMMITTEE HSE Vice President
ENVIRONMENTAL MANAGEMENT HEALTH AND SAFETY DIRECTORATE INDUSTRIAL SAFETY DIRECTORATE DIRECTORATE
HSE FUNCTION AND SAFETY REPRESENTATIVES FOR ALL EVRAZ OPERATIONS Sustainability report 2020 40 41 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EXTERNAL INITIATIVES HEALTH AND SAFETY MANAGEMENT The Group pledges to implement HSE-related associations the best HS practices within the industry so as to minimise safety related risks and to share information about the latest WORLD STEEL ASSOCIATION HS initiatives. Despite the COVID-19 pandemic, EVRAZ continued to actively EVRAZ sits on the Technology Policy (TPCO) and Safety and Health (SHCO) collaborate with a range of industrial and Environmental Policy (EPCO) committees of the World Steel Association. During committee meetings companies exchange best industry practices as well as materials related associations. Joint efforts between EVRAZ to health, safety, and the environment. The Group integrates the best solutions identified 2020 2020 Material Global sustainable and HSE-related associations allowed into its HSE management system. In addition, the association discloses the HSE statistics of its highlights Key events topics development goals us to share best practices related to coping participants, which allows us to compare our performance against that of our peers. and dealing with the pandemic. Thus, • The Group’s LTIFR 1.581. • Introducing the Hunt for Risk • Health and Safety. the corporate bow-tie diagram, which mobile app. was used to identify and counteract RUSSIAN STEEL • 5 fatal incidents in 2020. COVID outbreaks at facilities, • Conducting a safety culture was recognised by the World Steel EVRAZ participates in all Russian steel commissions, including the Commission • 175 cases of occupational diagnostic audit. Association as an example of best practice for the Protection of Labour, Industrial, and Environmental Safety and the Commission illness. for Production, Technology, Training, and Education. and was recommended for industrial • Implementing a CCTV • 42,136 employees underwent implementation. surveillance system Risk Management Project with machine learning. RUSSIAN UNION OF INDUSTRIALS AND ENTREPRENEURS training. EVRAZ is an active member of a number of associations. EVRAZ is a member of the Commission on Mining, the Commission on Metals, the Committee on Digital Economy, and the Committee on Corporate Social Responsibility and Demographic Policies.
GRI 403–1 GRI 103 APPROACH
EVRAZ adopts a proactive and preventative by making them personally responsible In total, 42,136 EVRAZ employees approach to HS issues. This approach for safe behaviour and compliance were trained in 2020 using both online is firmly embedded in our corporate with safety rules and by engaging and face-to-face formats. culture, as well as in our organisational employees into risk assessment and hazard • A further major KPI is the number setup, policies, and procedures. The Group identification processes. of critical risks identified and described is fully committed to meeting all applicable using risk passports. legislative requirements as well as internal The Group assess the effectiveness of HS corporate standards on health and safety strategic approaches and initiatives EVRAZ is committed to further reducing protection. by collating data on key performance the number of incidents and to eventually indicators (KPIs). In 2020, three KPIs reaching a level of zero fatalities and zero The philosophy of the Group in relation relating to the implementation status injuries. to occupational health and safety is no of Risk Management projects were added GRI 403–7 harm. This involves taking all preventative to the strategic goal cards of EVRAZ measures to minimise the risk of injuries divisions. In 2019 safety initiatives began to people to zero, and applies to both • The main KPI is the percentage to be implemented through a companywide our own employees and contractors. of facilities covered by the new Hunt improvement Risk Management project, for Risk management tool. Our goal which affects all EVRAZ facilities and covers EVRAZ makes significant efforts to improve of 100% coverage was not reached (due a wide range of business processes. the safety culture and to engage employees to the COVID-19 pandemic), however, The project embraces the concept of pre- in health and safety management, and also the Group managed to achieve around emption, that is, always being one step implements a risk-orientated approach 90% coverage of facilities. ahead. The goal of the project is to further in all operational activities. The Group • The second most-important KPI strengthen the safety culture and HS strives to enhance and maintain a high is the number of employees that have performance through risk awareness safety culture level among employees passed Risk Management training. and leadership development. As part of the project EVRAZ created several
1. Excluding fatalities and data on contractors. Sustainability report 2020 42 43 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
management teams to support and assist not help building a strong safety culture and safety standards: the Group’s facilities with, for example, moving or rotating The pilot project was launched drivers and passengers are wearing in the implementation of new risk or promoting safe bahaviour. Thus, are certified under OHSAS18001:2007 tools and gears, and in each case makes by Raspadskaya Coal Company seat belts, whether a driver is being management tools. 2020 was a trail period the updated process seeks to determine and certain facilities under the ISO a decision. The video system, which also (RUK) at the Montazhnik Raspadskoy coal distracted by a phone conversation, for the project, and in 2021 it is planned root causes of incidents through in-depth 45001:2018 standard. EVRAZ is committed uses artificial intelligence, analyses videos mine and is currently being rolled out etc. Another project to be launched that teams will be delegated to standard analyses of risks and nonreliable protective to further enhancing its health and safety from surveillance cameras in real time. All at other facilities and Group divisions. is the implementation of the video working groups. tools and systems, using fault tree analyses management system and safeguarding violations are identified with an accuracy The system has also been deployed monitoring system in drifting faces. and variability maps. In 2021 we plan employee safety. In 2019 the Group began of 95% and are registered automatically. If at the enrichment facility at Raspadskaya, OHS regulations, guidelines, to adopt this regulation across the Group. undertaking all preparations required the system finds that in several similar cases at the Alardinskaya and Erunakovskaya-VIII Modern technologies and the latest and policies to update the OHS management system the same decision is made, it automatically mines, and in PJSC Raspadskaya, ATP YUKU, advances in science and technology help In addition, in 2020 during an investigation at the Group’s enterprises and align learns this type of violation without and EVRAZ ZSMK. EVRAZ monitor compliance with safety rules EVRAZ regularly updates and implements into a fatality we amended the corporate it with the new international standard ISO any action from the operator. Notifications at the facilities. new HS regulations and standards to ensure Cardinal Safety Rules by adding another 45001:2018. EVRAZ NTMK is currently on violations are sent to the HSE department EVRAZ implements a similar system compliance with both international best norm that impose the prohibition on any preparing to be certified under the ISO of the respective facility. for corporate transport, analysing whether practices and domestic legislation. human activity under the displaceable 45001:2018 standard. All facilities already loads. A new version has already been certified under ISO 45001:2018 need The main corporate document issued. EVRAZ is committed to adhering to regularly demonstrate compliance encompassing health and safety to all domestic HS legislation, internal with the stringent requirements protection is the EVRAZ HSE Policy, regulations, and international safety of the standard. Hence in 2020 Hunt for Risk mobile app which was elaborated in 2011. This key standards. Hence the aforesaid a recertification audit was conducted regulation defines HS roles, responsibilities, and other rules and regulations constitute at the EVRAZ ZSMK facility to confirm GRI 403–2 and the general management the following health and safety document compliance with the ISO 45001:2018 In 2020, as part of the Risk Management project, EVRAZ developed the mobile app approach; declares health and safety framework, which regulates all EVRAZ international standard. The compliance Hunt for Risk to identify and analyse workplace risks. This advanced tool contributes to be an overall priority; and sets out operational activities on an equal basis, assessment was performed by the reputable to bolstering the safety culture across the Group, involving modern gamification respective expectations for employees. with technological regulations and job verification body Bureau Veritas techniques. Also, it establishes the minimum descriptions: Certification Rus. During the audit officials requirements for avoiding harm to people. • The HSE Policy. held interviews with staff, managers, Employees use the app to identify dangerous areas or unsafe processes at or The policy covers all EVRAZ employees • The Cardinal Safety Rules. and senior executives, and visited the test near their workplaces, and upload photos to a central database to get guidance and contractors. • The Standard Incident Reporting Rules. centre, laboratories, and industrial shops on handling potential hazards or to have risks addressed by HS specialists. Risk • Internal Investigation Regulations. of the facility. Other Group facilities alerts are sent to officers in charge within EVRAZ, including senior executives. In 2020 the Group revised the corporate • The Risk Management Standard. will be certified under ISO 45001 before Risk Management Standard, with a view • The Standard on HSE Contractor the OHSAS18001:2007 certificate expires. The app classifies risks and adopts measures to mitigate them, thereby making Hunt to amending it to take into account new Management. for Risk a common tool for all EVRAZ Divisions. The app also enables a rejection Risk Management project requirements. of work to be registered. International standards GRI 403–2 To motivate employees to use the app and engage them in health and safety issues, GRI 403–8 At the beginning of the reporting they are awarded points for every risk identified that can be exchanged for prizes period EVRAZ also revised the internal An OHS management system has been and souvenirs. investigation process. The Group adopted at all the Group’s production is certain that finger-pointing, undue facilities. EVRAZ meets the requirements With the app most employees can report and eliminate risks easily, simply, pressure, and excessive punishment do of international occupational health and quickly.
HS INITIATIVES AND PROJECTS IN 2020 Contractor engagement to provide safe working conditions specialists and staff involved in HS by engaging managers and performing process to identify gaps and areas in need GRI 403-3 GRI 403–7 The Group seeks to promote safe ongoing supervisions of the safety of improvement. EVRAZ is continuously developing new performance and detailed gap analyses behaviour among its contractors and has climate at industrial sites. This rating safety initiatives, with a view to bringing was performed. Based on this rating, areas Digitalisation established a wide range of methods also plays a role in contract conditions. It did not take long to see results. about further workplace safety improvement. for further improvement were identified. to ensure that operations at facilities If any contractor company is rated good The contractor applies the same These initiatives comprise short-, medium-, Blocked emergency exits and a lack In order to prevent incidents and to achieve are carried out in full compliance and can demonstrate a positive track record evaluating tool to access its contractor and long-term programmes and projects. of training on the part of dispatchers the strategic goal of no harm to employees, with domestic legislation and corporate vis-à-vis HS, it can obtain the reduction company, making them responsible In 2020 the Group continued to implement were determined to be the most common in 2020 EVRAZ launched a digitalisation rules and regulations. of payment deferment date. On the other for HS issues and sharing with them new safety initiatives. deficiencies at operating coal facilities. project that is based on machine learning hand, an unsatisfactory track record could duties and competencies. Only companies As a remedial action, the Group planned models. The main protection method In 2020 the Group introduced an initiative lead directly to a contract being rejected. having passed the test are eligible to work. Improvements to emergency to perform stress tests and launch training is the automatic positioning of staff, which to create ratings for contractors As a result, no fatalities were recorded prevention and response system programme for mine dispatchers, with a view involves monitoring all employee movements with respect to HSE issues. This measure The rating is based on the results among EVRAZ contractors in 2020. to improving their stress-resistance levels. via video and RFID-tags. When a worker is designed to encourage contractors of industrial site audits and calculations In 2020 the Coal Division launched This measure allows our peers to perform enters an industrial shop the system checks to improve and bolster their efforts of average marks. This tool helps HS the Accident Prevention initiative, to establish their duties independently and with integrity. the status of private protection equipment the level of emergency preparedness of coal (PPE) and flags violations: absence mines. In order to obtain a clear picture, In 2021 the Group plans to continue with this of goggles, gloves, overalls, etc., or whether the mines were ranked in terms of emergency initiative and to eradicate any gaps. the worker is located in a dangerous zone Sustainability report 2020 44 45 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
DEVELOPING THE SAFETY CULTURE to elicit whether a work suspension HS motivation system and controls so that they can work more was required. By addressing such issues safely and be more productive. EVRAZ The Group is committed to attaining the current level of compliance was 45%, Behaviour safety conversations at meetings the Group establishes In 2020 EVRAZ also reviewed the current provides a range of training courses in all in the long term a robust safety culture, which corresponds to the advanced second and safe work procedures the expectations of appropriate safety motivation system and redesigned business divisions. All EVRAZ employees transitioning from the full supervision level. EVRAZ plans to achieve a 60% behaviour among the workforce. it. The Group developed a range undergo all respective mandatory trainings, GRI 403–7 of employees to their personal compliance level by the end of 2021. of criteria regarding employee behaviour which are updated regularly to take engagement in HS issues. The Group Measures aimed at enhancing the safety For EVRAZ it is vital that all employees view that correspond to the third level into account amendments to domestic puts significant efforts into building EVRAZ is happy to report that several culture and further engaging employees the changes as a positive and proactive of the Bradley scale and implemented these legislation. The appropriate and safe a stringent safety culture and reliable facilities have already gone through in OHS management processes are key step towards safeguarding their health into the motivation system. The criteria handling of tools and installations, primary and safe practices are implemented the third (Independent) level of safety important components of the Risk and safety. A special feedback algorithm include cases of work rejection, risk reports, knowledge of occupational and fire safety, at each facility of the Group. EVRAZ culture and are continuing with safety Management project. During the reporting has been developed to enhance and elaborating local documentation and basic first aid skills all play key roles understands that no operational activity culture improvements. The Group plans period EVRAZ continued with the practice interactions between workers and line- that will assist in performing operational in safeguarding the health and safety can be successful without an appropriate to bring other facilities up to the third of holding safety conversations, however, managers. Assurances are made by senior activities in an easier and safer way. of employees. safety culture level in place. The continued level by means of a transparent and simple within the Risk Management project executives that no penalties will be imposed improvement of the safety culture involves system that will help maintain not only this is gradually being replaced by new if an employee refuses to perform a work The Group expects these criteria In addition to legally required trainings, thousands of EVRAZ employees: all staff, a reactive level but also enhance the overall risk management tools, e.g. brief chats task, and this is also regularly made known to be implemented in future corporate EVRAZ offers regular professional including managers and executives, safety culture level of the Group. EVRAZ and briefings before work commences via our corporate television channel projects, including the HR system, which development programmes, including are trained to improve safety performance has developed a promising plan to achieve in order to improve risk awareness among and at meetings and using posters. will enable individual HS performance voluntary initiatives to set up training and enhance their risk awareness. this important corporate strategic goal. workers and line managers. It is ineffective to be assessed along with remuneration centres and security systems, and a safe to discuss industrial risks somewhere out and bonus payments. driving course. In 2020 EVRAZ made further efforts Three main areas of safety culture of the working areas. Hence it is important to improve the safety culture programme, development were identified in 2020: that potential risks are assessed Unfortunately, a system of penalties is still In 2020 EVRAZ continued to conduct with a range of initiatives rolled out • A safety motivation system. and analysed by staff in the places Drones at EVRAZ operating, however, it has also been trainings within the Risk Management to boost employee engagement • Determining employee behaviour that where they work. EVRAZ is committed restructured and organised. The most project. More than 42,000 employees and introduce new safety tools corresponds to a proactive level of safety. to developing and implementing a risk- KGOK gross violations relating to critical risks passed our training during the reporting and methods. • Resolving the Safety vs Production orientated approach at all operating were identified. There are strict sanctions year. Despite the pandemic, EVRAZ EVRAZ embraces the latest dilemma. facilities. in place for violations that could lead was able to fulfil the training plans technologies to assist in safety to grave injury or fatalities. by changing the format to online, webinar- Safety culture diagnostic audit efforts and to prevent harm coming According to these areas EVRAZ conducted In 2020 the safety culture was boosted to employees. As part of this based sessions. We are aware that in such In the first quarter of 2020 it was decided a range of pilot projects and developed by a new effective procedure that process, EVRAZ KGOK introduced The structure of safety development funds a case it is rather complicated to oversee to conduct a diagnostic audit to evaluate a respective programme, which will contributes to resolving the Safety an initiative to survey sites using has also evolved during the reporting how well employees prepare, however, the level of the corporate safety culture. be implemented in 2021. vs Production dilemma. The Group drones. These small helpers have period. In 2020 the Group significantly the focus of the training was geared As a result, a self-diagnostic methodology launched a series of short safety briefings, become indispensable during increased the sum of motivational fund. towards obtaining practical skills that will was developed, which covers all Within the areas to be developed three Safety Moment, at which all related surveys of opencasts, tailings, The benefits are payed for the best help the worker perform their work safely. the specific features of the facilities. This phrases were encouraged to be used: “I’m cases are carefully analysed. This area storages, and other production employees taking into account useful tool enables the safety culture level acting”, “I’m communicating”, and “I’m is closely connected with the Work sites. The modern device is also their commitment to HS issues including In addition, EVRAZ launched a training to be assessed and monitored in terms proposing”, to try to impress upon staff Rejection regulation, which allows each able to create a 3D model cases of work suspension, risk reports programme to further improve of its dynamics. that a good safety culture means more than employee to refuse work that poses of the location and determinate and other HS performance of individual. the engagement level of our managers just following the rules. This philosophy a risk of injury. An analysis of data the ore quantity at the storage and people. The programme for managers The Group’s main strategic goal for 2021 is embedded in the safety behaviour model showed that the regulation is rarely without employee involvement. From 2021 the HS motivational system will and senior executives lasts four days, is to achieve across the Group the third and the Group expects all staff to embrace applied at management level and that The production site contains many begin to operate at full strength. and one day for other grades of employees. (Independent) level of safety culture it, regardless of their status or position. only a small percentage of workers apply dangerous areas with restricted The course is focused on the role according to Bradley scale. The self- it independently. Prompts and help access. Thus, ore mineral tailing Occupational health and safety of leadership in HS and helps management diagnostic methodology indicated that were needed for the majority of the staff surface can start moving during trainings foster appropriate behaviour among onground survey that could cause the workforce. GRI 403–5 harm to the employee’s health. Bradley scale of safety culture development Furthermore, in wintertime the snow Professional education and training covers pits, trenches, etc making are key tools for informing workers them invisible for the employee. and managers about workplace hazards No doubt that using of drones significantly reduces the risk of injury. REACTIVE DEPENDENT INDEPENDENT INTERDEPENDENT The same method is widely used Natural instincts Supervising Inherent safety Teamwork at the EVRAZ RUK facilities. Executives and managers Management commitment Personal knowledge and high Responsibility for colleagues are not aware of HSE issues and supervising competence Professional pride for the work injury of Rate The HSE responsibility rests only Fear of being penalised Recognition of employee’s Personal contribution with respective department HSE Trainings achievements to the safe work The main goal is to meet Management understand Employees are not afraid the legal requirements the value of each employee to report violations Safe behaviour is a standard
Time and efforts Sustainability report 2020 46 47 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Fatalities Two fatalities recorded at a coal mine The fifth fatality involved an employee were due to a microearthquake (MEQ), losing his life due to a rock fall. OCCUPATIONAL INJURY PREVENTION GRI 403–9 when a coal face layer suddenly collapsed. Despite all the efforts made, EVRAZ There was no way to predict this event Number of fatalities among EVRAZ Nothing matters more than every single LTIFR reductions compared to 2019 figures. experienced five fatalities in 2020. using the modern means available. During employees and contractors, 2018–2020 employee returning home safely every EVRAZ intends to keep improving LTIFR The Group is deeply saddened by these the investigation it was established that GRI 403–9 day after work. Thus, EVRAZ prioritises rates in the future by learning from past losses. Any fatal case is unacceptable, ore mines can handle risks related to MEQ, keeping its employees and contractors safe The Group has a wide range incidents and implementing advanced and the Group will continue to do its but that there are difficulties predicting 5 and alert to potential hazards in their work. of measurement indicators related technologies. utmost to achieve its strategic goal of zero them at coal mines. EVRAZ performs 2020 0 The Group performs ongoing stringent to assessing safety performance, including fatalities. However, we are pleased to report benchmarks of best practices adopted monitoring of HSE performance, including the LTIFR. Target LTIFRs are cascaded down In 2020 the most serious injuries recorded that during the reporting period no cases by coal facilities to help avoid similar 2019 12 the lost time injury frequency rate (LTIFR) throughout the Group. In 2020 the LTIFR occurred as a result of moving and rotating of death were recorded among EVRAZ accidents from occurring in the future. 4 and the number of fatalities, with an eye at EVRAZ stood at 1.58, which was 22.5% gears and equipment or debris, rock contractors. to elaborating and introducing all required lower than the 2019 figure of 2.04. burst, and transport accidents. For each The fourth fatality involved an employee 2018 6 4 mitigation measures and initiatives. The Group met its target level of 1.61. risk category EVRAZ has developed The first fatality related to a fall of a load being fatally injured by rotating gears. and implemented a range of HSE initiatives. at a coal mine. The investigation established As a result, EVRAZ plans to launch a new EVRAZ employees A significant improvement in the LTIFR that no risk management tools had programme in 2021 to avoid these frequent Contractors was recorded at the Coal Division and ENA, been implemented at the facility. Also, injuries. A comprehensive inventory LED strips at grooves which in 2020 recorded 21.3% and 29.9% it was determined that workers were not of dangerous zones was conducted, sufficiently aware of this type of risk factor. and each division pursues an initiative EVRAZ RUK uses intrinsically safe As a result, the Cardinal Safety Rules to establish more reliable means LED strips at its mines. The bright Injury rates, per 1 million hours Main types of high-consequence work- were amended with a new norm concerning of protection via equipment shutdowns illumination of a mine shaft (excl. contractors), 2018–2020 related injuries and fatalities, 2020 (incl. the risks posed by an employee being when an employee enters a dangerous contributes to improving underground contractors), % situated under the displaceable load. zone. safety and working conditions in general.
1.58 2020 0.18 HEALTH PROTECTION This innovative measure related 0.05 to lighting in mines is widely used in South Africa. The main advantage 2.04 GRI 403–6 2019 0.29 of LED is not spot- but flood- 0.10 based light throughout the length The Group invests significant efforts 1.91 into enhancing working conditions of the groove. Lamps are mounted 2018 0.23 Hospital construction supply 0.05 and improving the corporate healthcare in durable non-flammable containers EVRAZ earmarked US$2.7 million to finance the construction system. All facilities are equipped in compliance with respective safety Rate of recordable work-relates injuries (LTIFR) of a hospital to treat infectious diseases in Novokuznetsk Moving and rotating equipment 30 requirements for mines. Rate of high-consequence work-related injuries Moving and rotating equipment with medical posts to perform pre- Rock burst 20 and supplied steel products for the project via its trading arm, (excluding fatalities) Rock burst and post-shift checks-ups, give first TransportTransport accidents accidents 14 EVRAZ Metall Inprom (EMI). The hospital will comprise a main Rate of fatalities as a result of work-related injury aid, conduct alcohol tests, and provide A shaft is distinguished by several CollapsingCollapsing and and falling falling materials materials 10 four-storey building and 10 administrative buildings, totalling 27,800 sq m. OtherOther unclassified unclassified factors factors of ofinjury injury 10 other medical assistance to employees. LED strip colours. Thus, red strips EmployeeEmployee falling falling 10 The new medical centre will replace Municipal Hospital №8 in Novokuznetsk. indicate dangerous areas, and green ImpactImpact of ofsmoke smoke and and fire fire 3 The Group covers expenses for surgeries Falling from height 3 and other medical procedures if they ones indicate boarding areas Falling from height Stakeholders: employees, local communities. for chairlifts. White LED strips are needed. All employees must undergo annual medical examinations and health are mounted along pedestrian paths. Value for stakeholders: access to healthcare facilities and health support. checks before commencing employment. Value for EVRAZ: employees health care, sound relationships with authorities In addition to legislative requirements, and local communities. EVRAZ organises voluntary health protection campaigns. Since the onset of the COVID-19 pandemic the issue of employee health has taken on greater significance. Together with our partner insurance company we launched a project to improve how to identify occupational Regional medicine development diseases. The start of 2020 was marked EVRAZ allocated over US$110 thousand to support medical institutions by a number of natural deaths due in Novokuznetsk and Tashtagol. Novokuznetsk City Clinical Hospital No. 1 to cardiovascular diseases, which made received over US$20 thousand for the purchase of medicines to treat patients us search for ways to identify groups with coronavirus. at risk of contracting this type of disease. EVRAZ received an offer from the partner The remaining sum was received by the Tashtagol regional hospital to purchase insurance company to provide a mentoring specialised equipment. The medical facility received oxygen concentrators, programme which includes advanced irradiators-recirculators for air disinfection, and digital mobile X-ray diagnostic medical check-ups, collecting medical equipment to diagnose lung disease in non-mobile patients. The hospital needs data that can be recorded on special this equipment to be able to effectively treat severe forms of COVID-19. medical cards for employees. By analysing Sustainability report 2020 48 49 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
respective results, it will be possible in 2019, which saw 237 cases. The structure is distributed immediately to all affected Contractor engagement be exposed to hazardous work until in raising their risk awareness and that they to ascertain specific risk groups of registered occupational diseases suffered managers. In addition, the local HSE their practical skills and knowledge have strive to enhance the OHS management and prevent the onset of diseases. no changes during the reporting period. department conducts investigations EVRAZ involves all contractors been assessed. system through implementing risk The most common reported illness remain and disseminates key findings, so that every in the EVRAZ OHS management system, management tools. This initiative has been launched in the Ural musculoskeletal (90 cases) and hearing employee can learn from incidents. and the Groups plans to boost engagement EVRAZ and its contractors work together Division, and the Group plans to involve disorders (67) and respiratory diseases, levels in this regard. Interactions to guarantee occupational safety. In this In the first quarter of 2021 EVRAZ began other business segments in the new project. due to high dust concentrations in the air HSE functions also monitor subsidiaries with the contractors are regulated regard the Group has begun offering involving contractors in the new mobile at worksites. using monthly, quarterly, and annual by the Standard on HSE Contractor contractors occupational health and safety app Hunt for Risk, which will help identify Registered occupational HSE performance reports, based on data Management, which consists of a four- corporate trainings. For the Group it is very more risks and make production sites safer diseases Safety monitoring system collected through the corporate HSE stage procedure. Contractors cannot important that its contractors have a stake and more comfortable. reporting system. GRI 403–10 Ongoing safety performance monitoring In accordance with domestic labour is an indispensable tool in the prevention The Group requires its employees to not legislation the Group insures all EVRAZ of occupational injuries and diseases. conceal or misrepresent the circumstances EMERGENCY PREVENTION AND RESPONSE employees against work-related accidents Standard incident reporting regulations, of HS violations. All EVRAZ employees and occupational diseases. All treatments which form part of the Incident are involved in the monitoring process of occupational diseases are covered by this Management Standard, have been by reporting information on incidents All EVRAZ facilities are prepared routinely undergo training and exercises In line with domestic legislation, the Action insurance. implemented in EVRAZ. In the event and safety violation cases, using the EVRAZ to respond to a wide range of emergency on their roles and duties in emergency Plans for the Localisation and Liquidation of an incident occurring a Flash Hotline. events, caused by natural disasters response situations, to be sufficiently of the Accidents Consequences have been 175 cases of occupational diseases report outlining all respective details or industrial accidents. Evaluations prepared if incidents occur. According developed at all EVRAZ facilities. were documented during 2020 at EVRAZ and circumstances and response actions of emergency related risks are conducted to the respective risk evaluation each facilities, which was 26,2% lower than taken is issued within 24 hours. The report on a regular basis, in accordance EVRAZ facility is designated a hazard All facilities of the Group are equipped with the EVRAZ Industrial Safety class based on the types of hazardous with emergency warning systems. Management System Provision. This substances used, previous cases In the event of an emergency, the system is a proactive system that incorporates a set of emergencies, and the emergency- is activated to inform employees, local TRANSPORT SAFETY of procedures and documents that are used prevention system. communities, and authorities, as well to prevent an emergency. EVRAZ personnel as special rescue services. Transportation vehicles are used extensively New buses were customised according We are pleased to report that EVRAZ in EVRAZ operations, both in production to the amended safety regulation of EVRAZ RUK has declared 2020 to be the year processes and in transporting employees RUK. The new features included reinforced of transport safety. The Group plans to fully to Group facilities. EVRAZ always pays frames, warning strobes, and all seats refresh its fleet of corporate transport GOALS FOR 2021 AND THE MIDTERM significant attention to improving transport being equipped with three-point seatbelts to comply the local safety regulations. safety and has implemented various in order to ensure the safety of passengers initiatives across all enterprises. in case of an accident. Also, vehicles now New vehicles were also purchased have onboard front and rear dashcams by EVRAZ KGOK to improve the safety Safety culture development Management System for risk management Finalising risk management In 2020 the corporate fleet of EVRAZ which stream online pictures to line of staff during their movements in quarries. processes and HSE teams. Safety projects RUK was replenished with three crew managers at facilities. US$415 thousand was earmarked for this EVRAZ plans to continue to implement management processes will be reviewed vehicles for employee transportation. measure. key initiatives targeted at improving with a view to reducing red tape EVRAZ plans to finalise the Risk the safety culture. Our strategic goal and introducing automation options. Management project implementation is to reach in 2021 at least 60% compliance by the middle of 2021, and an assessment under the Bradley scale of safety culture. Formalisation of competencies of the project’s efficacy will also EXTERNAL OHS ACTIVITIES be performed. HSE transformation The Group stresses the importance of building necessary competencies The role played by contractors in EVRAZ’s HSE Contractor Management Standard In the next reporting period, another key among employees, and not to overly rely daily operations cannot be overstated. HS objective for EVRAZ will be to perform on qualifications; this approach better The Group is committed to promoting HSE transformation initiatives that meets the requirements of risk prevention. safety behaviour among its contractors STEP 1. HEALTH AND SAFETY QUALIFICATIONS FOR CONTRACTORS include in-depth adaptations of the HSE and strives to share the lessons learned with them; therefore, their skills and HS performance are vital in order for work to be performed safely. STEP 2. ANALYSIS OF CONTRACTOR COMPLIANCE WITH HEALTH AND SAFETY REQUIREMENTS
STEP 3. SIGNING CONTRACT WITH CONTRACTOR, INCLUDING CONTRACTORS’ SAFETY RESPONSIBILITIES
STEP 4. EVALUATING HOW WELL A CONTRACTOR HAS MET HEALTH AND SAFETY RESPONSIBILITIES Sustainability report 2020 50 51 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
ENVIRONMENTAL MANAGEMENT MANAGEMENT APPROACH GRI 307–1 We strive to ensure that our operations EVRAZ strictly adheres with applicable We implement environmental and social are conducted in the most sustainable environmental requirements. We impact assessments (ESIAs) for all way possible and do our utmost conduct internal audits in terms of risk our new projects and operations. During to mitigate adverse environmental impacts assessments and HSE management system these we evaluate the potential direct caused by our day-to-day operations, evaluations. External environmental audits and indirect impacts of our activities in order to comply with environmental are performed by state authorities and third on local communities and surrounding obligations and to meet the expectations parties at our operations to ensure that environments. The purpose 2020 2020 Material Global sustainable of stakeholders. We invest great the Group complies with environmental of the assessments is to prepare detailed highlights Key events topics development goals efforts into enhancing all aspects requirements. There were no significant plans to mitigate and manage these of our environmental performance, environmental incidents or material impacts. When conducting ESIAs, • Non-mining waste recycling • 2nd place in the TOP-10 • Management and the Group’s contributions environmental claims involving the Group’s we consult with local and regional and reuse rate 102.7%. list for environmental risk approach. have received positive feedback assets during the reporting period. stakeholders (governments, businesses, management among the WSJ from the international business community. The total value of non-compliance-related and communities) throughout the project’s • Reduction in total air ranking of the world’s 100 • Emissions. levies and fines issued against the Group life to discuss any decisions and measures atmospheric emissions most sustainably managed Our HSE Policy establishes a framework in 2020 was US$3.1 million, compared to be implemented. from steel production • Water and effluent. companies. for environmental management (see to US$5.0 million in 2019. by 3.7%. • Waste. the Health, safety, and environmental When conducting day-to-day operations, • Overhaul of Blast Furnace governance, page 39). All our enterprises In 2020 we began reviewing our corporate EVRAZ employees are required to adhere 6, a state-of-the-art • Biodiversity. have adopted an environmental regulations relating to the registration, to established Fundamental Environmental environmentally friendly management system (EMS), based evaluation, authorisation, and restriction Requirements. These comprise procedures facility at EVRAZ NTMK. on the plan-do-check-act (PDCA) model. of chemicals (REACH) compliance vis-à- related to environmental control systems, • Upgrades completed The EMS provides a framework that vis products supplied to or manufactured and prohibitions against the discharge of electrostatic precipitators contributes to mitigating environmental in the European Economic Area of any chemical products and waste at boilers 7, 8 at EVRAZ risks and supports the organisation by the Group’s assets. The completion disposal outside designated areas. ZSMK. of the Group’s environmental compliance. of the update is scheduled for 2021.
• Reclamation project completed for tailings storage facility №2 at EVRAZ EVRAZ’s Fundamental Environmental Requirements ZSMK.
It is forbidden to shut down environmental It is forbidden to discharge any chemical It is forbidden to burn or dump control systems without proper products (oil, acids, alkali, and other production and consumption waste outside authorisation and notification. liquid products, which are prohibited designated areas. to be discharged under our technological requirements), both into sewage systems Case study and on the ground. World’s 100 most sustainably managed companies
In 2020 EVRAZ took second place for environmental risk management in the Wall Street Journal’s (WSJ) ranking of the world’s 100 most sustainably managed companies. In order to maintain a high level In 2020, EVRAZ spent US$56.95 million cost to implement these programmes The WSJ evaluated over 5,500 global public companies of environmental awareness on projects to improve its environmental totaled US$226.2 million, compared in 26 categories, determined by the independent and competence among our employees, performance and US$32.87 million with US$198.6 million as of 31 December Sustainability Accounting Standards Board. The WSJ we hold various trainings on waste on measures to ensure environmental 2019. The rising environmental commitments praised EVRAZ’s efforts to reduce emissions and focus management methods, HSE practices, compliance. The Group has also committed is mainly related to renewal of obligations on energy efficiency projects. and other topics. In 2020, due to implement various environmental under the Wastewater Management to the COVID-19 pandemic, most of these protection programmes over 2021–2026. programmes of steel production sites trainings were held in an online format. As of 31 December 2020, the estimated to implement “zero water discharge” goal. Sustainability report 2020 52 53 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
to reduce atmospheric emissions from steel We are also planning a number of projects EVRAZ key air emissions breakdown, production by 33% and dust emissions aimed at modernising coke production 2018–2020, kt from coal mining by 1.5 times. in order to reduce air emissions. Case study GRI 305–7 Environmental strategy To achieve the goals of the Environmental Our key emissions include sulphur oxide 45.11 strategy, we implement a number (SOx), nitrogen oxide (NOx), volatile SOx 45.38 EVRAZ has formulated an Environmental strategy, which contains a framework for ensuring environmental compliance of measures to reduce our air emissions. organic compounds (VOCs), and particulate 51.30 25.52 and mitigating against any potential adverse environmental impacts. The strategy is based on sustainable business practices These measures include technical matter (PM). Total key air emissions in 2020 NOx 28.85 and environmental principles, which are incorporated into all stages of our value chain. overhauls of our steel production facilities, were down 5.3% against the 2019 level. 29.69 1.42 commissioning of dust suppression units. VOC 1.45 Previously, EVRAZ had five-year environmental goals (set in 2017) in three areas: water, waste, and GHG emissions. We achieved 1.26 49.25 the following results (for data on GHG emissions see the GHG emissions and energy efficiency section, page 60): PM 52.44 • Reducing water consumption to 207 million m3: water consumption in 2020 fell to 206.2 million m3. 45.98 • Recycling non-mining waste and by-products at a rate of 95%: 102.7% recycled in 2020. 2020 2019 2018
In 2020 EVRAZ updated the Environmental strategy and elaborated two scenarios, related to the level of impacts and capital EVRAZ total air emissions (including key EVRAZ key air emissions, EVRAZ total air emissions (including key investments: realistic and stressful. In order to meet the expectations of investors and society, the Group has also set new goals emissions) from coal, 2018–2020, kt 2018–2020, kt emissions) from steel production, for the period up to 2030 (with 2019 as the baseline year), which cover four aspects – water, waste, air emissions, and GHG 2018–2020, kt indicators (see the GHG emissions and energy efficiency section, page 60). New goals were set with the realistic scenario GRI 305–7 in mind, and are listed below: GRI 305–7 GRI 305–7
Area Goal (2019–2030) 2020 status 2020 429.69 2020 121.30 2020 381.57 Water Zero wastewater1 discharges from steel production. 68.6 million m3
Waste Utilise 95% of waste from metal production and general waste. 102.7% 2019 403.19 2019 128.13 2019 396.22
Recycle 50% of mining waste. 28.5% 2018 273.90 2018 128.24 2018 409.20 Air emissions Reduce total atmospheric emissions from steel production 3.7% decrease by 33%.
Reduce dust emissions from coal mining by 1.5 times. 10.1% decrease
Within the new strategy the Group also aims to ensure full regulatory compliance and transparent data measurements by 2025. To enhance the disclosure of information regarding its Environmental strategy, the Group also updated its environmental Case study reporting procedures during the reporting period. New dust suppression unit at Raspadskaya
A new mobile dust suppression unit was put into operation at Raspadskaya. The unit has a closed water-sludge cycle. Water within the cycle is replenished with treated wastewater, and no discharges are made into water bodies. The installation REDUCING AIR EMISSIONS sprays a tiny stream (up to 30 microns) of water, and the range of the water jet is 90 metres and covers an area GRI 305–7 of 24,000 square metres. The dust suppression unit reduces As a result of steelmaking processes, emissions are generated by oxidation EVRAZ recognises that its business dust emissions at the operation site by 85–90%. emissions of pollutants are inevitably of sulphur contained in ore or coking activities produce a large volume of air generated. In steel production, the main coal. Dust is produced during all stages emissions, and that these could potentially emissions are carbon monoxide (CO), of metallurgical processing (sintering, cause adverse impacts on human health sulphur oxides (SOx), nitrogen oxides blast furnace stage, steelmaking, rolling and the environment. We implement (NOx), particulate matter (dust) and volatile production) and also in result of our best available technologies and regularly organic compounds (VOCs). The main coal mining activities, mainly during upgrade equipment, and in addition all source of formation of carbon monoxide transportation and storage of coal. Volatile emissions are frequently monitored in order and nitrogen oxides is fuel combustion. organic compounds are mainly associated to minimise the risk that acceptable limits Also, significant volumes of carbon with coke production. are breached. The emission reduction monoxide are generated during the blast targets are included in our Environmental furnace production stage. Sulphur oxides strategy, according to which we plan
1. For the purpose of disclosing wastewater discharge the Steel segment is represented by EVRAZ ENA, EVRAZ ZSMK and EVRAZ NTMK only, while other environmental indicators include also EVRAZ KGOK, Evrazruda, EVRAZ Vanady Tula, EVRAZ Nikom and EVRAZ Caspian Steel. Mining assets are not included in Steel segment as they produce effluents of quarry and mine water, that EVRAZ cannot reduce due to their natural origin factors. Sustainability report 2020 54 55 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
BALANCING WATER SUPPLY
Case study GRI 303-2 GRI 303-5 Clean air Our business operations require significant (RSPP), actively engages in dialogue equipment cooling needs, fire safety, as well volumes of water. We endeavour on environmental issues, including those as for drinking and household purposes. EVRAZ has continued to implement the Clean Air federal project, which To attain the Environmental strategy goals, to implement the most efficient water related to water management. Thus, Almost 95% of total freshwater intake is part of our national Environment project. In 2020, as part of the Clean EVRAZ implements various activities management methods and best practices we dedicate substantial efforts to treat for production needs relates to major steel Air project, significant measures were taken to improve gas purification and investments, including those within in order to handle both mine water our effluents, so they could be used factories: EVRAZ NTMK, EVRAZ KGOK, systems at EVRAZ NTMK and EVRAZ ZSMK. the scope of the Clean Air project. and freshwater in a rational and sustainable for production needs instead of freshwater. and EVRAZ ZSMK (including Evrazruda). way. EVRAZ is committed to reducing Around 90% of these factories’ freshwater GRI 303–1 At EVRAZ NTMK the project involved an overhaul of Blast Furnace the volume of water consumption, intake is covered by surface water, including 6, a state-of-the-art environmentally friendly facility in Russia. Blast which is in line with our HSE Policy. Most of our business operations do from rivers, lakes, and reservoirs. Total water Furnace 6 has aspiration units that contain 34,560 filters designed Responsibility among executive not take place in water-stressed regions. consumption in 2020 at these sites stood to collect and purify air. It also uses a system that analyses over 12,000 management for achieving water- Although EVRAZ does not pose at 205.7 million m3, with freshwater making indicators to select the optimal conditions and to manage manufacturing related goals and implementing tasks any substantial risks on availability up over 95.2% of this demand. In 2020 automatically. The system facilitated a 150 percent rise in gas cleaning. is consolidated within the framework of our of water resources, we strive to minimise the total volume of freshwater consumed The project cost in total US$176 million (including US$10.7 million HSE management structure, which involves any potential impacts our operations may for production purposes was 206.2 million to upgrade the aspiration units). the Board of Directors dealing with water cause by reducing water intake. We m3, 0.9 million m3 higher than in 2019. risks management issues among other take in freshwater from surface water At EVRAZ ZSMK an upgrade of electrostatic precipitators at boilers tasks. EVRAZ, being a member of Russian bodies, groundwater wells, and public 7 and 8 was completed, and for boiler 10 commissioning works Union of Industrialists and Entrepreneurs water networks for production processes, were launched. The precipitators purify flue gases from ash when burning coal in boilers. As a result, dust emissions into the atmosphere of Novokuznetsk will be reduced by 10 thousand tonnes per year. Investment in the project totalled US$8.4 million for the past three years. EVRAZ freshwater intake for production Water consumption by sources, EVRAZ EVRAZ freshwater withdrawal intensity, needs, 2018–2020, million m3 total and by segments1, 2020, % 2018–2020, m3/US$ thousand revenue
In addition, it was planned to build a modern facility for flue gas GRI 303–3 GRI 303–3 desulphurisation at the sintering plant of EVRAZ ZSMK by 2024. Due to the high sulphur content in iron ore, it is essential to ensure efficient 86 4 8 2 gas purification at the plant. The planned facility will reduce sulphur 2020 206.20 EVRAZ 2020 21.14 dioxide emissions by 70%. In 2020 the main equipment was identified, Steel 91 3 5 1 segment and a project engineering contract concluded. Construction will begin 2 98 2019 205.32 Steel, NA 2019 17.25 in 2021. segment Coal 1 45 8 46 2018 226.49 segment 17.64 84 2 13 1 2018 Other Surface water sources Public network Ground water Other sources
Freshwater withdrawal intensity, Water discharge intensity, 2018–2020, Total water discharged2, million m3 Case study 2018–2020, m3 per tonne of crude m3 per tonne of crude steel cast steel cast
Regina Reheat Furnace Low NOx Burners GRI 303–4 GRI 303–4
Over 2018–2020 the EVRAZ steel mill at Regina saw a significant upgrade to the steel reheat furnace at its rolling mill. This furnace 68.6 2020 11.90 2020 5.03 2020 is used to heat new steel slabs produced at the steel mill, so that 56.7 they can be rolled into sheets and then wound into new steel coils. As with all fuel combustion, the operation of the natural 68.9 2019 11.92 2019 4.99 2019 gas-fired furnace produces emissions of nitrogen oxides (NOx) 57.0 in its exhaust gas. Improvements included installation of low-NOx 75.3 burners in the furnace, which was completed at the end of April 2018 14.07 2018 5.78 2018 2020. An analysis of the exhaust gas indicated 51 grams of NOx per 56.6 gigajoule (g/GJ) of fuel, satisfying the new Canadian standard of 60 Water Discharges (Steel) g/GJ, and reducing the NOx emissions intensity from the furnace Water Discharges (Mining) by around 50%. This will provide an ongoing benefit, by improving the air quality in the area with respect to NOx. The project required a total of US$14.36 million in investment.
1. Data presented without mine and quarry water. For the purpose of disclosing fresh water consumption the Steel segment is represented by EVRAZ ZSMK and EVRAZ NTMK only, while the Other sources section includes EVRAZ KGOK, Evrazruda, EVRAZ Vanady Tula, EVRAZ Nikom and EVRAZ Caspian Steel. Mining assets are not included in Steel segment as they produce effluents of quarry and mine water, that EVRAZ cannot reduce due to their natural origin factors. 2. Water discharges during mining activities (effluents of quarry and mine water) are shown separately, as EVRAZ cannot reduce these discharges due to their natural origin factors. Sustainability report 2020 56 57 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
For safety reasons we also pump mine water to other consumers. In 2020 we used our water discharges, which also A total of 8.7 million tonnes of non-mining waste and by-products water (quarry water) out of mines and open 24.3 million m3 (or 34.6%) of mine water contributes to lowering water intensity Minimise at the source were generated by EVRAZ enterprises in 2020. pits at our coal and ore mining sites. Mine for production needs instead of freshwater. of EVRAZ. Overall water discharge intensity water is produced when groundwater The remaining volume, 45.8 million m3 in 2020 stood up to 9.19 m3 per tonne • Improve technological processes to enhance product quality • Secure by-products without generating waste of various aquifersmixes and interacts (65.4%), was discharged into water bodies. of crude steel cast, however, 4.16 m3 per EVRAZ mining and non-mining waste generated, 2018–2020, with the air in the mine and rocks In line with our water-related Environmental tonne of those are related to mine water. million tonnes uncovered by mining excavations. We strategy goal, mine water is treated As mentioned above, mine water discharge Reuse GRI 306–3 are unable to fully control or forecast to remove pollutants introduced during is not controllable, because it is related the volume of this water, as it is a natural mining. to ensuring safety of workers by pumping • Reuse main types of waste from metal production: slag, Waste type 2018 2019 2020 phenomenon. We strive to use mine groundwater out of mines. Water discharge clinker and tailings, including from old dumps water for production needs instead We adhere strictly to legal requirements intensity related to steel production totalled Non-mining 7.9 8.4 8.7 of freshwater, however the volume of such related to water discharges. In 2020 5.03 m3 per tonne of crude steel cast. waste water exceeds the volume needed at our the total volume of water discharged We also focus on industry median when Recycle Mining waste 232.0 198.8 135.6 mining assets. Also, the majority of our was 125.3 million m3, 0.6 million m3 planning our water discharges reduction mines are located in remote areas that rule lower than in 2019. According to our measures. • Develop new products that feature various types of waste out any possibility of delivering surplus Environmental strategy we aim to reduce • Use inert waste to reshape land plots and to build dams EVRAZ waste generated and received, 2020, % or roads
Burn as fuel / Generate heat Case study • Generate heat from hot slag; use waste for heating (local Clean water and sanitation boilers)
In 2020 EVRAZ ZSMK began construction of wastewater treatment facilities, as part of continued efforts to reduce Store adverse water-related impacts on the environment Mining waste generated 93.10 under the Water programme. These measures will halt • Store waste that cannot be used today safely, retaining Other waste generated 6.86 water discharges into Lake Uzkoe, in line with the goal the option of using the locations as industrial sites Received from other sites 0.04 set out in the Environmental strategy. Treated wastewater in the future will be used for production needs. In line with the Environmental strategy, EVRAZ seeks to increase The project encompasses multi-stage wastewater Burn amounts of recycled and reused waste. In 2020, 48.9 million tonnes treatment, as a result of which no threshold limit of waste (including mining waste) were reused. The Group uses for pollutants will be exceeded. It is estimated that • It is forbidden to: “burn production and consumption waste non-hazardous mining waste for land rehabilitation purposes the capacity of treatment units under the project without special facilities or dump it outside designated areas” and to build dams and roads, where possible. In 2020, 38.6 million will reach 600 m3 per hour. The project is scheduled (EVRAZ Fundamental Environmental Requirements) tonnes of this waste were reused, which made up 79% of total for completion at the end of 2022. waste reused.
Stakeholders: local communities. Value for stakeholders: a clean lake. Case study Value for EVRAZ: increased public trust, Recycling used tyres an enhanced reputation, an absence of fines. We seize any opportunity that allows us to use our waste more rationally. One example here would be used tyres from large-sized dump trucks being recycled at Raspadskaya Coal Company. Tyres are non-hazardous waste with a low level of environmental impacts, however, when they decompose they can release harmful substances.
As they accumulate, used tyres are transported WASTE STEWARDSHIP from the mine by a contractor. Then they are cleaned of metal parts and fittings and crushed into fragments. GRI 306–1 GRI 306–2 GRI 306-4 GRI 306-5 The rubber is used to make soft coverings for pathways and roofing material, and it can be added to paving slabs. We recognise that during our business as overburden, tailings, and barren rock. Our waste management strategy comprises Also, around 30% of tyres are used to build safety barriers activities large volumes of waste We strive to implement the best available the following areas (listed in order on roads. are generated (including from metal management practices in this area, of priority): production and general (non-mining) in order to use natural resources rationally Over 200 used tyres are recycled at Raspadskaya per year, waste) and mining waste, such and, as a result, reduce waste generation. which is more than 500 tonnes of waste. Sustainability report 2020 58 59 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Non-mining waste recycling and reuse Mining waste recycling and reuse rate, 1 rate , 2018–2020, % 2018–2020, % Case study Case study 2030 goal 95% Campaign to enhance local Reclamation project for tailings storage facility №2 at Evrazruda 2020 102.7 2020 28.5 2030 goal environments Life on land 50% The project was implemented in several stages. In 2014 the tailing dump was mothballed: the destroyed part of the enclosing EVRAZ actively supports various dam was restored, a drainage collector, a pumping station and a pipeline for discharging filtration water were built. 2019 105.2 2019 38.0 initiatives aimed at both increasing In the period from 2014 to 2018, the technical stage of reclamation was completed: the pond was drained, the territory environmental awareness of the tailing dump was cleared, the zoning of reclamation surface was carried out, a screen of loam and fertile layer was laid. The last biological stage of reclamation was completed in 2019–2020, during which 21,300 pine seedlings and 43,530 sea 2018 111.3 2018 26.7 and enhancing local ecosystems. In 2020 our employees carried buckthorn seedlings were planted. out a number of tree and shrub Waste from metal production is stored compliance with applicable legislation planting activities in Mezhdurechensk The reclamation project eliminated dust emissions into the atmosphere, improved the quality of soil on the site. Planted at tailings storage facilities (TSF). and covers all stages of the process. and Novokuznetsk, including trees and vegetation will transform the disturbed terrain. The total area of reclamation was 30.58 hectares. The total cost EVRAZ owns three operating TSF, located The TSF service life comprises design, at kindergartens, schools, hospitals, of the reclamation project stood around US$12 million. at EVRAZ ZSMK and EVRAZ KGOK. construction, operation, and closure. and city squares. EVRAZ’s coal The Group considers the safety of TSF We also carry out continual safety miners and ecologists in total planted to be a top priority, as their operation monitoring procedures and our TSF over 700 trees and bushes. Restoring aquatic biodiversity entails significant environmental risks. are regularly audited by both internal GRI 304–3 Case study We have elaborated a dam safety and external specialists, as well Our employees actively participate management system that ensures as inspectors from regulatory bodies. in urban environmental events Our approach to biodiversity includes Restoring aquatic biodiversity in the Tom river and have received awards in various seeking to preserve the quality of water nominations. In particular, ecosystems and supporting existing Raspadskaya Coal Company actively participates in measures to restore aquatic Raspadskaya employees received biodiversity. On a regular basis EVRAZ biodiversity in local water bodies. In particular, a large-scale campaign was held PROTECTING BIODIVERSITY a diploma from the administration releases various species of fish into affected in 2020 as part of the event “Days of Protection from Environmental Hazards”, of Mezhdurechensk for taking part water bodies, in order to offset during which over 15,000 grayling fingerlings were released into the River Tom. GRI 304–1 in the event “Days of Protection any potential impacts on bioresources. Related expenses totalled US$3.5 thousand. from Environmental Hazards” In 2020 EVRAZ assets released As a large company, we consider ourselves In 2020 we completed a reclamation project and won in the nomination “Most over 204 thousand fingerlings in Kemerovo Other fingerling releases carried out in 2020 included: responsible towards protecting biodiversity for tailings storage facility №2 at Evrazruda Active Enterprise”. region, with Raspadskaya Coal Company • 19,645 muksun fingerlings into the Ob River (expenses totalled and local species and their habitats. EVRAZ (EVRAZ ZSMK). Overall provision of EVRAZ making a substantial contribution. US$4.1 thousand) assesses biodiversity related impacts for site closure and rehabilitation totalled • 55,294 peled fingerlings into the Novosibirsk reservoir in the Altai Territory during all stages of implementing mining US$296 million as of 31 December 2020. (US$12.3 thousand) and steel-making projects. EVRAZ assets are not located in protected natural areas or territories with a high biodiversity value. Also, our activities do not directly impact biodiversity.
Our activities are geared towards OUTLOOK FOR 2021 AND THE MIDTERM promoting a rational and prudent attitude towards biodiversity and enhancing the living environments of our employees. In 2021 the Group will continue We also actively engage with local with efforts to mitigate any adverse EVRAZ ZSMK: • Decommissioning of the cooling tower communities on biodiversity related issues. impacts and to preserve and enhance • Coke gas cooling system upgrade. 2021 for coke oven gas. 2021 objective: surrounding environments. In the midterm objective: complete the design stage. continue the project (to be completed In 2020 EVRAZ performed the following we plan to review a number of regulatory • Off Gas Desulphurisation Installation. by 2022). activities related to biodiversity documents, including the HSE Policy 2021 objective: complete the design stage preservation: and REACH regulations. EVRAZ will (in progress since 2019). EVRAZ Vanady-Tula: • rehabilitating disturbed land maintain its commitment to implementing • Kiln off-gas system upgrade. 2021 and landscaping. measures under the Clean Air national EVRAZ NTMK: objective: complete the project. • restoring aquatic biodiversity. project. • Coke gas redirected to by-product EVRAZ will also continue to implement its recovery plant № 3. 2021 objective: Water management programmes launched Rehabilitating disturbed land Air Emission reduction programme, which continue the project (to be completed in previous periods will continue, and landscaping includes the following key projects: by 2022). including at EVRAZ ZSMK, EVRAZ NTMK, • Off-gas cleaning units efficiency upgrade Raspadskaya, and EVRAZ Vanady-Tula. In order to restore land disturbed 2021 objective: continue the project The construction of treatment facilities by mining and steel-making operations, (to be completed by 2024). at Raspadskaya Coal Company will also the Group implements environmental continue in 2021. projects to rehabilitate affected areas.
1. Recycling and reuse rates are over 100% due to the disposal of previously accumulated waste. Sustainability report 2020 60 61 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
from both production divisions for collecting climate risk identification • Responsibility among executive GHG EMISSIONS and various directorates (financial, and assessment results for all EVRAZ management for performing climate- strategic, risk management, HSE). business processes, and also elaborates related tasks is delegated based AND ENERGY EFFICIENCY • The Risk Management Working Group measures to reduce the impact of these on respective matters and powers. (at CEO level) is chiefly responsible risks on the Group as a whole.
EVRAZ elaborates and adopts various measures to combat climate change and is guided by three core principles:
considering climate risks supporting cooperation to combat introducing advanced and opportunities in the business climate change technologies to lower GHG 2020 2020 Material Global sustainable model emissions highlights Key events topics development goals
• Total GHG emissions 43.63 • Release of the first Climate • Energy. MtCO2e. Change Report. With a projected rise in global demand increase their service life). Identifying A substantial part of EVRAZ’s efforts • Carbon Emissions. for high-quality steel, due to factors such opportunities to use the Group’s products to lower total and specific GHG emissions • GHG emission intensity 1.97 • Adoption of ambitious new as the development of the construction for a low-carbon future enhances the long- relates to energy and fuel consumed tCO2e/tcs. climate-related targets. sector and urban transport infrastructure term sustainability of the business model. at the Group’s facilities. By implementing (including rail transport), EVRAZ sees best practices and technologies, EVRAZ • Total energy consumption • Organizational changes great potential and opportunity for using EVRAZ supports global initiatives to combat boosts energy efficiency and increases 351.81 million GJ. in energy efficiency the steel industry’s products to assist climate change, as well as national the use of renewable and secondary energy management that have in transitioning to a low-carbon economy. climate-related strategies in the countries sources. The Group is working to reduce • Energy intensity 23.34 GJ/tcs. enabled the involvement As the world’s only full-cycle vanadium where it operates. In compliance the carbon intensity of its energy sources of the shops where energy manufacturer, the Group considers its with the Companies Act 2006 (Strategic and to raise its own power generation consumption directly occurs. own vanadium products to be valuable and Directors’ Report) Regulations and self-sufficiency levels by recycling • Reconstruction of blast materials for renewable energy generation 2013, the Group commenced annual 100% of secondary energy resources furnace No. 6. (e.g. the application of vanadium alloys measurements of GHG emissions at all its generated at its metallurgical plants. in the construction of wind turbines can enterprises in 2013. • Continued work to install the gas top pressure recovery 2020 results turbine at EVRAZ NTMK. Since 2011 the Group has participated EVRAZ’s commitment to lowering involve implementing modernisation in the CDP Climate Change Programme greenhouse gas emissions is reflected and energy efficiency measures, and recorded a “D” score in 2020, even in its goals. The Group has set a target with energy efficiency projects being though the requirements of the CDP for the period 2018–2022 of maintaining a core component of EVRAZ’s efforts questionnaire became more stringent. specific Scope 1 and 2 GHG emissions to lower GHG emissions. In addition from steel production (the Steel and North to energy efficiency initiatives, during GHG EMISSIONS Another milestone for the Group in 2020 America segments) at below 2 tonnes the development of the Group’s was joining the UN Global Compact of carbon dioxide equivalent per tonne Environmental strategy EVRAZ As mining and metallurgical operations its obligations in the area of climate and irreversible impacts resulting initiative, which considers business of crude steel (tCO2e/tcs). This target assessed several promising projects are energy intensive and generate change mitigation and understands from further rises in global average as a force for good and drives companies’ was achieved in 2019, with a level of 1.97 for switching to the best available significant volumes of greenhouse gas that businesses must play an active role temperatures. awareness and actions in order to achieve tCO2e/tcs. In 2020 EVRAZ was able technologies aimed at reducing GHG emissions (GHGs), EVRAZ recognises in finding solutions to prevent negative Sustainable Development Goals by 2030. to meet the target, with the same value emissions, including the return of sinter EVRAZ has made a voluntary commitment of 1.97 tCO2e/tcs. gases to the sinter furnace and gas Management approach to work on implementing 10 universal tank installation to recover converter sustainability principles, which will In 2020 the Group improved and updated gas and heat at oxygen converter GRI 103–2 support the Group’s efforts to promote the Environmental strategy, which sets forth shop no. 2. It is planned to adopt Climate-related issues are handled within under the remit of the Board of Directors, of the Climate strategy, as part the transition to a low-carbon future. new and ambitious climate-related goals these technologies in the future the framework of EVRAZ HSE management with the Audit Committee supporting of the Environmental strategy. As a participant in the UN Global Compact, for up to 2030, using 2019 as a baseline as part of the implementation structure, where: these functions. • The CEO of EVRAZ has ultimate EVRAZ promotes a preventative approach year. Steps include: of the Environmental strategy up to 2030. • The Board of Directors deals with climate • Discussions of climate change-related responsibility for climate risk management to environmental challenges and greater • Reducing specific Scope 1 and 2 GHG • Utilising 75% of methane (CH4) emitted change corporate governance, goal issues take place at regular (twice and ensures the effective organization environmental responsibility, and also emissions from EVRAZ’s Steel segments in the process of degassing carried out setting, and risk management issues a year) meetings of the HSE Committee, of the climate risk management system. carries out work to develop and implement (the Steel and North America segments) during coal mining. at its meetings. Monitoring climate risks which determines an acceptable • The elaboration of climate-related green technologies, such as those that by 20%, in compliance with the Paris and the opportunity management process level of exposure to climate risks projects is carried out by the Working lower its GHG emissions. Agreement. Work to meet this goal will and approving an appropriate level and assists the Board of Directors Group on Environmental strategy (at CEO of risk appetite for the Group also fall in overseeing the implementation level), which is made up of representatives Sustainability report 2020 62 63 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI 305–5 Case study As above, EVRAZ discloses data in tCO2e The growth in Scope 1 EVRAZ emissions The Steel segment (incl. North America) Climate Change Report 2020 (tonnes of carbon dioxide equivalent). was mainly attributable to an annual continues to generate a significant portion EVRAZ estimates direct emissions (Scope increase in methane emissions (by of the Group’s gross GHG emissions, In October 2020, EVRAZ published its first dedicated Climate Change Report 1) of all seven GHGs1 stated in the Kyoto 5.4% vs. 2019), due to higher methane and accounted for 70% of the total GHG compliant with TCFD recommendations and providing additional information Protocol and indirect energy emissions concentrations in the coal seams and more level in 2020. Operations in the Coal about the Group’s approach to climate change. This includes the role played by top linked to the purchased electricity and heat intense degassing at some mines. segment accounted for 30% of overall GHG management in this area and the organisational structure of climate-related risk (Scope 2). The 2006 IPCC Guidelines emissions in 2020, almost all of which (94%) management. for National Greenhouse Gas Inventories EVRAZ Main Scope 1 emissions, 2018– were methane emissions. (IPCC 2006) and the WRI/WBCSD 2020, million tCO2e
The report comprises key indicators on GHG emissions from their first assessment GHG Protocol Corporate Accounting GRI 305–1 Overall emissions in the steel sector (the (2013) to 2019 with more detailed information on GHG emissions for 2019 (Scope 1 and Reporting Standard are used Steel and North America segments) were GHG emissions simultaneously by country and GHG type were disclosed for the first for the emissions inventory2. 1.0% lower than the 2019 level, mostly due time). 27.78 11.64 to a slight decline in crude steel production, 2020 In 2020, during the process of developing and hence the specific intensity of GHG 27.96 11.04 Information on the EVRAZ vision for a low-carbon future for steel producers the new Environmental strategy’s goals, emissions remains at the same level of 1.97 2019 was provided in the report, as well as cutting-edge technologies for the metals EVRAZ has taken initial steps in assessing tCO2e/tcs. and steel industry’s decarbonization that EVRAZ is ready to consider its Scope 3 (indirect non-energy) emissions, 26.86 7.64 2018 for implementation in the future. and it plans to improve its approach to estimating total greenhouse gas CO2 emissions, million tCO2e Specific Scope 1 and 2 GHG emissions CH4 emissions, million tCO2e from steel production (Steel and North GRI 201–2 emissions, including the methodology America segments), 2018–2020, In 2020, EVRAZ conducted its pioneer climate scenario review and its first steps for calculating them, in 2021. tCO2e/tcs in assessing climate-related risks and appropriate opportunities in accordance with TCFD recommendations. Results of this analysis were presented in the Climate In 2020, nearly all of EVRAZ’s GHG As methane is combustible, the Group GRI 305–4 Change Report. Representatives of the top management participated in the preparation emissions remained at the same level, rising carries out preliminary degassing of risk maps for various EVRAZ’ business units and business processes. by only 0.64% compared to 2019. There to improve employee safety. To improve EVRAZ target by 2022 – was also a 1.1% rise in the Group’s direct efficiency in this regard, it is important 2 tCO2e/tcs A qualitative evaluation has comprised eight climate risks, including transition GHG emissions, whereas 2020 saw a 3.3% to increase the volume of gas captured. 2020 1.97 and physical risks relating to weather conditions, and it has shown that there is no reduction in Scope 2 EVRAZ emissions. This generates higher methane emissions, critical threat to the normal operation of the Group at present. In the scenario where The latter was due to lower steel production and to reduce these, EVRAZ plans the global average temperature does not rise by more than 1.5 degrees, transition at the Group’s North American assets, which to implement research and development 2019 1.97 risks will become relevant for EVRAZ (e.g., reputational risks associated with increasing have no integrated power plants and have projects on methane utilisation in 2021. expectations for action on climate change from multiple stakeholders). As it gets to purchase electricity from the market, to 4.5 degrees, the significance of physical risk management to the smooth running and a decrease in electricity purchases 2018 2.01 of business operations is expected to increase. The Group plans to strengthen climate by Russian steel mills. risk assessment in the future.
In general, the release of this report has enabled EVRAZ to enhance the quality EVRAZ Scope 1 and 2 GHG emissions, EVRAZ GHG emissions by segment GHG emissions per consolidated 3 of its climate disclosure, and by adopting TCFD recommendations, the Group 2018–2020 , million tCO2e in 2020, million tCO2e revenue, 2018–2020, kgCO2e/US$ keeps stakeholders informed about the risks it faces due to climate change, as well GRI 305–1 305–2 GRI 305–2 GRI 305–1 GRI 305–4 as opportunities to manage these risks. When necessary, for instance, if there are significant changes in the approach to climate change, the Group plans to release 12.28 0.91 39.48 4.14 Coal 4.5 new Climate Change Report. EVRAZ 3.6 2020 segment 3.0 0.62 0.59 4.2 Hence, the Climate Change Report highlights the high degree of engagement 39.06 4.28 Steel, NA Steel 2019 3.6 of the Group’s top management in addressing climate change issues, as well segment segment 3.2 26.58 2.64 as in climate risk management processes. Having taken initial steps in the assessment 34.56 4.23 Steel Steel, 0.7 2018 segment 0.6 of physical and transition climate risks in 2020, EVRAZ aims to further improve NA segment 0.5 39.48 4.14 Direct emissions (Scope 1) Coal 8.9 climate risk management processes by integrating physical and transition climate risks EVRAZ Total 6.2 into the Group’s business strategy and regular risk assessments. The Group recognizes Indirect emissions (Scope 2) segment 4.0 Direct emissions (Scope 1) the need to consider physical and transition climate risks in its strategic planning. Stakeholders: EVRAZ, Indirect energy emissions (Scope 2) 2020 2019 2018 government, local communities. The Climate Change Report disclosed the physical risks that the Group pays the most attention to, their monitoring and managing. The report also outlines the drivers Value for stakeholders: of the identified physical risks and the measures in place to mitigate them, including contributing to the achievement initiatives to implement a closed water supply system and maximize the use of national goals on clean of recycled water, to enhance regular monitoring of weather conditions and the health environment. 1. of production equipment, etc. The key initiative to reduce the Group’s impact Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC) and perfluorocarbons (PFC), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3) on increasing climate change and the severity of physical climate risks are the activities Value for EVRAZ: transparent 2. The inventory comprises all enterprises controlled by EVRAZ. Facilities removed during the year have been incorporated into the accounting for the period in which they under the energy efficiency programs, the implementation of which allows EVRAZ disclosure on climate issues, were part of the Group. Only enterprises that were considered immaterial for the consolidated emissions on the basis of their production figures were not included. to reduce greenhouse gas emissions and to achieve the goal by 2030 to reduce specific responsible business approach. Direct CO2 emissions from operations were calculated using the carbon balance method for carbon flows throughout production facilities, including fuel use. Emissions of other GHGs were calculated based on measured volumes, changes in the inventory or IPCC 2006 factors and models (including for methane emissions after coal direct and indirect energy GHG emissions by 20% compared to the 2019 level. mining) where there is no direct measurement data. Indirect emissions were estimated using country- or region-specific emission factors, if available, or other factors provided by UK Defra. 3. The 2020 greenhouse gas emissions data have been refined as a result of verification, so they differ from those previously disclosed in the Annual Report for 2020. Sustainability report 2020 64 65 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI 302–3 BOOSTING ENERGY EFFICIENCY EVRAZ total energy consumption and production output, 2018–20203,4 In 2020 EVRAZ sought to reduce downtime at its production shops, which helped decrease To mitigate its impact on accelerating climate change, EVRAZ pursues various energy efficiency measures, which reduce the amount Total energy consumption Total energy consumption of EVRAZ’ energy intensity by almost 4.7% year-on- of greenhouse gases from operations, as well as energy and process fuel costs. of EVRAZ’ steelmaking operations mining operations (coal and iron ore) year. The energy intensity of EVRAZ NTMK and its production1 and its production2 and EVRAZ ZSMK also decreased by 10.1% versus the base year of 2018, partially Management approach due to the development of the energy management system. GRI 103–2 13,650 34,858 31.9 2020 319.9 2020 Energy intensity forms an essential In 2020 a number of changes were made in an enterprise to collect suggestions, Energy intensity, 2018–20205, GJ/tonne part of energy efficiency programmes to the energy efficiency management the best of which are then tested 13,832 39,905 of crude steel at EVRAZ. In order to enhance energy function. Teams of energy management and implemented. Another method 2019 2019 340.0 32.7 efficiency and to lower energy intensity, system experts were created at the two is problem-solving stands, which allow 37,703 the Group is working to enhance energy most energy intensive facilities, EVRAZ comments and questions from staff 13,036 25.6 2018 32.5 management at its assets and to engage ZSMK and EVRAZ NTMK (which account to be promptly collected. These tools 2018 322.6 2020 23.3 all employees in energy efficiency issues. for over 85% of the Group’s energy are key in implementing a comprehensive In 2019 EVRAZ senior management decided consumption). These teams were tasked and integrated approach to the Group’s 27.5 Energy consumption, million GJ Energy consumption, million GJ 2019 24.5 to create a separate function to bolster with monitoring energy consumption, operations, the so-called EVRAZ Business Production, kt Production, kt the energy management system at its minimising energy intensity, and lowering System. production divisions in Russia. These efforts energy costs. 28.5 2018 25.3 focused partially on production processes In 2020 energy efficiency projects were also and the transportation of energy resources EVRAZ has employed various methods initiated as part of regular programmes EVRAZ NTMK and EVRAZ ZSMK EVRAZ to power plants at facilities. They also for generating and proposing ideas such as the New EVRAZ Leaders (70 sought to broaden the scale of the energy to improve fuel and energy efficiency employees participated) and the Project Note: Data on EVRAZ offices, including those in Russia efficiency management approach, and to reduce energy costs. As part Management School. All these measures and UK, are not included in the graphs, since the volume to include energy consumption processes of the Idea Factory programme, special are aimed at developing and unlocking of power they use is insignificant in terms of overall energy consumption within the Group. at steel production workshops. boxes are installed at each shop the potential of the Group’s employees.
2020 results Steel segment GRI 302–1 In 2020, EVRAZ developed • optimising the blend of furnace charge, The Group is working diligently to develop participants discussed the importance In 2020 EVRAZ NTMK completed a comprehensive programme for building coking coal, and process fuel. In 2020 the Group’s total energy and enhance its energy management of energy efficiency measures in the face the renovation of blast furnace No. 6 using a system of full-fledged interdepartmental • automating energy-intensive equipment. consumption fell by 5.7% year-on-year, system. In January 2021 EVRAZ NTMK of rising energy costs and the worsening the latest technologies, thereby making and unit-by-unit metering of energy • implementing digital transformations with energy consumption of steelmaking recertified its energy management system problem of climate change. EVRAZ NTMK’s blast furnace shop the most resources with an assessment of energy supply systems. facilities1 falling by 6.0% (to 319.9 million with the updated ISO 50001:2018 standard. The brainstorming session produced more efficient and environmentally friendly of the possibility of the operational impact GJ) and mining and coal assets1 by 2.5% Going forward, EVRAZ ZSMK and EVRAZ than 100 ideas. Employees put forward in Russia. To analyse and adjust production of production personnel on fuel and energy The Group also conducted an ambitious (to 31.9 million GJ). KGOK also plan to receive ISO 50001 new initiatives and adduced previous processes in the furnace, an expert costs in the technological process. The first target-setting cycle, which covers certification. ones, for example, related to upgrading system was implemented that, based stage of the programme implementation energy efficiency. This relied on industry In 2020 the key driver in the reduction the rolling stand engine control system on over 12,000 parameters, can select will allow to reduce by 30% unaccounted benchmarking and a review of best of energy consumption was the Based on positive lessons learned and implementing expert systems. A list optimal conditions and control the melting interdepartmental energy flows already production practices in each technological implementation of a range of energy-saving at EVRAZ ZSMK in September 2019, was drawn up of all the ideas voiced, process in automatic mode. This will in 2021. segment to evaluate the potential measures, including the reconstruction the event “Growth Points. Energy Efficiency” and by the middle of 2020 a number contribute to operational efficiencies, for reducing energy intensity. of CHPP boilers’ gas-carrying ducts, was held at EVRAZ NTMK centre of art of related initiatives had already been including energy efficiency enhancements. The Group’s energy efficiency programmes As a result, short- and long-term targets cutting coke consumption in blast furnace and culture in 2020. The ideas generated implemented. Six pumps in the H-beams The consumption of coking coal is also are helping to achieve the goal of lowering were established and further ways to lower operations and optimization of natural during this event were aimed to improve rolling shop were replaced, resulting projected to decline. the energy intensity of production energy consumption were identified. gas consumption in rolling shops due the energy efficiency both at EVRAZ NTMK in energy consumption being almost processes. The programmes contain to equipment upgrades and production and EVRAZ KGOK. halved. These energy sessions are expected In 2020 EVRAZ NTMK continued to install initiatives covering a five-year period. As part of its energy efficiency efforts, automation. In addition, during to be held on a regular basis, once every a gas top pressure recovery turbine the Group has begun to track energy the reporting period, work on technological Around 100 specialists took part in this two or three years. at blast furnace No. 7. This project forms The main aspects of energy efficiency intensity metrics at all its production process optimization and reducing event, including representatives from each part of an initiative to reduce electricity programmes are: facilities. EVRAZ is using this new KPI equipment downtime was carried out production shop and an invited expert purchases by generating energy in-house. • optimising and minimising energy to improve employee engagement at the Group’s enterprises, which also had from East Metals AG. At the session, consumption and losses at production and motivation. Success in the area a beneficial effect on reducing energy sites, including electricity, thermal energy, of boosting energy efficiency also requires intensity indicators. fuel, natural gas, and the off gases daily efforts to enhance the operational from furnaces. efficiency of equipment. • using secondary and renewable energy 3. To calculate the Group’s total energy consumption, this Report takes into account all energy used at EVRAZ facilities, including for the production of coke, coke products, sources. energy, and heat. The graphic shows data for steelmaking facilities and mining and coal assets. To compute total energy consumption within the Group, the formula given in GRI 302–1 is used (the sum of fuel consumed [non-renewable and renewable] and electricity, heating, cooling, steam [purchased for consumption and self- generated which are not consumed] minus the volumes of electricity, heating, cooling, and steam sold). 4. The energy consumption data have been refined, so they differ from the previously disclosed figures in the Annual Report for 2020. 5. 1. The steelmaking facilities are represented by EVRAZ NTMK, EVRAZ ZSMK, EVRAZ Nikom, EVRAZ Caspian Steel, EVRAZ Inc. NA, EVRAZ Inc. NA Canada, EVRAZ The figure includes data on the Steel segment (EVRAZ ZSMK, EVRAZ NTMK) and the Steel North America segment (EVRAZ Portland, EVRAZ Pueblo, EVRAZ Regina, Vanady Tula. EVRAZ Camrose, EVRAZ Calgary, and EVRAZ Red Deer). To calculate the energy intensity ratio for the Group, the formula given in GRI 302–3 is used (volumes of energy 2. The mining and coal assets are represented by EVRAZ Kachkanarsky Mining-and-Processing Integrated Works (EVRAZ KGOK), Raspadskaya Coal Company, Evrazruda. consumed per unit produced). Sustainability report 2020 66 67 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Case study Case study Installation of gas top pressure recovery turbine at EVRAZ NTMK Completion of renovation of electrical substation no. 1. EVRAZ NTMK is installing a gas top pressure recovery turbine, which is part of a special set of equipment, to generate energy from secondary sources. This technology makes it possible to convert blast furnace gas pressure energy into electric power This advanced unit is twice as powerful as the previous one without the combustion of additional fuel. The facility is being installed next to blast furnace no. 7 at EVRAZ NTMK, and itis installed at EVRAZ ZSMK 50 years ago. The new substation expected to be more advanced and powerful than its counterparts, of which there are only five in Russia. is automated and allows equipment and the network status to be remotely controlled and monitored. It is one The Group has spent US$18 million on this investment project, which is part of a large programme to provide EVRAZ NTMK of the largest power grid facilities at EVRAZ ZSMK, with its own electricity. Since blast furnace gas has high energy output, the facility’s launch will boost self-sufficiency in electricity with around US$10.5 million spent on the construction project, at EVRAZ NTMK (currently 75% of needs are met by own energy). In 2020 the construction of the facility’s building, electrical and it supplies electricity to some shops of the enterprise installation works, as well as the mounting and launch of the equipment were performed. (for example, the rolling, blast furnace, and oxygen shops; the new Air Liquide oxygen plant). The modern electrical The new turbine is scheduled to be launched in the first quarter of 2021 and it will enable EVRAZ NTMK to increase resource substation will also increase the reliability of the power supply, and energy efficiency and electricity self-sufficiency, and lower the cost of the final product. As the technology does not require cover EVRAZ ZSMK’s electricity needs for large production the burning of additional fuel, it will contribute to an overall reduction in CO2 and other emissions, in proportion to the volume development projects, and also prevent downtime. of electricity generated.
Stakeholders: EVRAZ, clients, local communities.
Value for stakeholders: resource and energy efficiency, cost of products, clean environment. In 2020, in cooperation with Air eliminate the need for expensive repairs. In 2020 a modern modular compressor Liquide, EVRAZ ZSMK continued The total cost of the project is around station was put into operation at EVRAZ Value for EVRAZ: operational cost decrease, attractiveness for clients, sound relationship with local citizens. with the renovation of oxygen US$150 million. The units are scheduled Vanadium Tula. The proposal to replace production, namely a project to build to launch in 2021. the old compressor station with a new air separation units with a capacity one came from the Ideas Factory initiative. of 90 thousand m3 / hour to ensure In 2020 EVRAZ KGOK’s two rail depots The new station consumes less electricity the manufacture of construction underwent a comprehensive upgrade and is cheaper to run, which makes and railway products. The advanced to their lighting systems, which not only it possible to reduce the cost of final equipment will be 30% more energy improved coverage, but also reduced production. The projected economic effect efficient than the previous one and will energy consumption by 40%. from introducing this station will be more than about US$14 thousand per year.
Coal segment
In 2020 a key event in the field of energy With the help of measures in the area as organisational initiatives, the enterprise efficiency was the implementation of production process optimisation, increased the volume of energy of an energy management system equipment replacement, maintaining consumption reduction almost seven times at Raspadskaya Coal Company. temperature systems, as well in 2020 compared to 2019.
Also, in 2020 the consumption of secondary energy resources was boosted following Steel, North America segment measures to overhaul power boilers No. 1, 2, 3 and 4 at EVRAZ ZSMK’s CHPP, To supply electricity to the EVRAZ Rocky and Lightsouce BP announced a long-term fundraising for the project was completed which allowed the consumption of blast Mountain Steel mill, in September 2019 Xcel partnership to develop a new 240-MW and construction activities began. Work furnace and coke gases to be increased Energy, EVRAZ North America, solar plant in Pueblo, Colorado. In 2020 on this project is being performed online and natural gas use to be reduced, thereby until the end of building process in 2021. achieving an economic effect of almost US$347 thousand.
Furthermore, in 2020 work on the new OUTLOOK FOR 2021 electrical substation’s construction continued at EVRAZ ZSMK. In 2021 EVRAZ will develop a comprehensive EVRAZ will also continue to integrate Under its energy efficiency programme methodology to assess the development energy efficiency criteria into its EVRAZ will also implement measures of energy management systems throughout procurement and investment processes. to reduce energy intensity. These measures the Group’s facilities. This methodology will The Group is actively working to acquire are part of ambitious targets the Group has be applied during internal energy management energy efficient electric motors set for each of its facilities. audits at segment and shop level. and transformers. Sustainability report 2020 68 69 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Supporting MANAGEMENT local communities APPROACH
for a Better Future We believe the prosperity of our business We are always ready for an open dialogue Strategic goal for local is ultimately linked to the success with local communities, government communities of the regions where we operate authorities and other stakeholders. and the fulfilment of local communities. EVRAZ actively uses various channels EVRAZ sees that business Hence transparent and constructive of communication and grievance sustainability is ultimately linked 2020 highlights Material topics 2020 – cooperation is a fundamental value mechanisms. Thus, local communities to the success of the communities embraced and upheld in all EVRAZ and other stakeholders can contact in the regions where we operate, key events activities. us via the Hotline service on any matter Indirect economic impacts and we support these through social US million that lies within the boundaries of EVRAZ’ and improvement programmes. $38 • Annual and new events switched EVRAZ has a significant positive responsibility. Local communities spent on social expenses in 2020 to an online format, including impact on the economic and social the High Five! Race and EVRAZ City development of the regions where GRI 413–1 of Friends – City of Ideas projects. we operate. We strive to build effective EVRAZ has implemented an effective More than and sustainable partnerships with local system for managing local community communities by adhering to the best relations and external communications international standards of sustainable at various corporate levels of the Group. US$200 thousand development. EVRAZ has created a wide The headquarters are responsible variety of initiatives aimed at fostering for engaging with and executing projects in grants to 44 winning projects the comprehensive development of local with stakeholders at a national level, as well of the annual EVRAZ City of Friends – City of Ideas contest communities and ensuring the well-being as elaborating and implementing strategic of their residents. Our key projects include priorities and guidelines. At regional improving local infrastructure, supporting level the key engagement responsibilities and financing programmes for children, of implementing and supporting local sponsoring sports teams, and protecting programmes are borne by the GR and PR the environment. departments of EVRAZ entities. At EVRAZ North America (ENA), the Group’s Global Sustainable Development Goals Since the Group’s enterprises are city- community relations are monitored forming in many regions of operation by the Director of Communications (in cities such as, for example, Nizhny and Government Affairs, with supervision Tagil and Novokuznetsk), EVRAZ is a key from the Senior Vice President of Human employer in these locations. We contribute Resources. to the prosperity of local communities via prioritizing local recruitment and creating decent working conditions for local people. Key documents
Document Description Code of Business Conduct The Code of Business Conduct contains the philosophy and principles underlying the corporate Please see on EVRAZ corporate website → culture and ethics of EVRAZ. The Code states that the Group commits to working with local communities, with a view to facilitating their development and well-being.
Social Investment Guidelines Our local community engagement approach. Outlines the Group’s priorities and eligibility Please see on EVRAZ corporate website → criteria for social investments.
Anti-Corruption Policy The Policy states our approach to corruption prevention, ensuring ethical business conduct (incl. Principles of Charitable Donation and compliance with applicable anti-corruption legislation, including matters related to donation, and Sponsorship Activity, and Regulation sponsorship and interaction with authorities. of Interaction with Authorities and Public Officials) Please see on EVRAZ corporate website → Sustainability report 2020 70 71 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
A transparent and open dialogue Guidelines and set target investment Social expenses (incl. charity), 2020, with representatives from local communities objectives. The key areas of donation US$ million LOCAL COMMUNITY SUPPORT allows us to identify and understand are support for orphanages and veterans, their key needs. Therefore, we implement sports, cultural and educational projects, only those initiatives that are socially as well as medical organisations PROJECTS significant for the regions where and environmental programmes. GRI 203–1 we operate. The Group annually prepares initiatives; and providing assistance non-profit organizations. We believe a Social Investment Programme to set In 2020 EVRAZ earmarked US$38 million Developing and enhancing relations to socially vulnerable groups, especially that such interaction with stakeholders the priorities and budget for social for social expenses, which exceeded with local communities is a mutually children with disabilities and orphans. contributes to the accelerated development investment for the year ahead. We publish the previous year’s spending by 12%. beneficial process and remains a strategic of the social environment, the industry, the report on implementing the Social priority for EVRAZ. The Group provides EVRAZ is an active participant in many and EVRAZ itself. Investment Programme at the end of each Under the Social Investment Guidelines, support to residents in a number of areas, events at federal, regional, and local levels, year. we do not support the following: Social infrastructure maintenance expenses 14.2 including improving urban infrastructure; including initiatives that involve cooperation • Organisations and programmes that Community support and development 9.2 sponsoring sports, educational and cultural with local authorities and supporting EVRAZ operates two charity funds influence legislation or elect candidates Sports 7.9 Culture, education and science 4.7 in Siberia and the Urals, which to state or local public offices. Other 1.9 are managed by supervisory boards. • Political, military, religious, and national PARTICIPATION IN FEDERAL AND INTERNATIONAL INITIATIVES The charity funds adhere to the EVRAZ or local governmental organisations Charity policy and Social Investment and projects. The Group pays great attention to significant local and international projects that align with our strategy and policies: we take part in these, and also organise and support some events.
OUR RESPONSE TO COVID-19 Federal and international initiatives
Industry and corporate events Cultural and social events One of the main priorities of the Group the purchase of medical equipment In addition, the Group launched a series In 2020 over 400 employees and 15 speakers participated in the annual EVRAZ sponsored the second public Common Cause forum is ensuring the safety and peace and personal protective equipment of information campaigns to raise BSE-summit, which was held in an online format. For three days Business in Novokuznetsk, which was dedicated to the work of social activists of the cities where EVRAZ enterprises for hospitals and social institutions awareness among residents about the rules System of EVRAZ (BSE) representatives from seven cities of Russia and NGOs and held in a digital format this year. are located. in the regions where we operate, and also of safe behaviour during a pandemic. and North America dicussed potential areas of future collaboration In 2020 we also partnered the III International Festival of Chamber funded the refurbishment and construction EVRAZ volunteers also actively supported and cooperative development. Performances WINDOWS and the regional Vysotsky Poetry and Song Healthcare system support has been of new medical institutions, the opening people vis-à-vis adapting to the current EVRAZ employees participated in the WorldSkills Hi-Tech Championship Festival in Novokuznetsk. 2020, where a number of them received awards for their outstanding and remains a priority area of the Group’s of laboratories to test for COVID-19, situation, and helped elderly people who professional skills. charitable activities during the spread and many other projects. In 2020 EVRAZ had to adhere to strict lockdown conditions of the coronavirus infection. Throughout earmarked almost US$6 million for COVID- in the regions where we operate. 2020 we supported healthcare institutions related expenses in the area of support GRI 413–1 GRI 203–2 and will continue to do so. EVRAZ financed to local communities. REGIONAL PROJECTS
EVRAZ has established three main priority areas for investment in the regions where we operate. Case study Case study
People of indispensable Iron Rules series EVRAZ’S THREE AREAS OF SOCIAL INVESTMENT professions: video of illustrations about metallurgists Together with the famous Internet working during artist Anton Gudim, EVRAZ the pandemic looked at the new realities EVRAZ FOR KIDS EVRAZ FOR CITIES EVRAZ FOR SPORTS of living in a pandemic, and created • Financing the improvement of youth- • Improving local urban infrastructures. • Funding local sports institutions, EVRAZ, together a series of illustrations aimed with the publishing house at drawing the attention of people, orientated educational, sports, • Sponsoring medical, educational, purchasing sports equipment, Komsomolskaya Pravda, and especially the employees cultural and medical institutions, and cultural institutions at both and improving facilities. released a video featuring of the Group, to new conditions their equipment and facilities. federal and local level. • Funding corporate sport EVRAZ metallurgists and miners for safe social interaction, • Sponsoring educational programmes • Funding infrastructure projects, as an important part of corporate that continued to work during as well as other issues related for children and young people, including building roads, streets, culture: organising sports events, the pandemic, so that construction to the COVID-19 pandemic. and providing scholarships. and embankments. competitions, and training projects would not be halted • Supporting children in orphanages programmes for employees and local in Russia, railways could expand, and children left without parental care. residents. and coal and necessary ore • Supporting children with special needs • Funding amateur and professional extraction works continue. and their families. sports teams and individual athletes. • Organising educational and entertainment events for employees’ children. Sustainability report 2020 72 73 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ for Kids Medical institutions EVRAZ contributes to the all-round EVRAZ participates in numerous federal people. In addition, EVRAZ for Kids development of children and young people youth programmes and works closely projects are aimed at the physical, Nizhny Tagil, Kachkanar Purchased modern equipment for physiotherapy rooms at the Nizhny Tagil children’s hospital and the Kachkanar by financing improvements to educational, with academic institutions, in efforts intellectual and social rehabilitation children’s polyclinic to rehabilitate children after operations and injuries. cultural, medical, and sports facilities. to finance and support children and young of children with disabilities. Supporting socially vulnerable children and their families EVRAZ for Kids projects Novokuznetsk Purchased clothes and footwear, as well as household appliances and bedding, for 9- and 11-grade students at the orphanages Rovesnik, Island of Hope, and House of Childhood No. 95.
Organised a 10-day hippotherapy course for over 60 children with disabilities of employees of the Group’s Education Siberian enterprises.
Nizhny Tagil Supported projects of the Live, baby charity: a social taxi for disabled children and Palliative School. Nizhny Tagil Helped educational and preschool institutions prepare for the new academic year: Nizhniy Tagil Mining and Metallurgical College, a boarding school for hearing-impaired and deaf children, and Joy kindergardens. Sponsored the setting up of the crisis centre Baby and Mom.
Refurbished and equipped with necessary furniture and electronic appliances the assembly hall of school No. 1. Organised a series of photo-, hippo-, aqua- and art therapy sessions for children with cerebral palsy. Installed modern equipment to train future welders and specialists in electrical work at school No. 49 and the Nizhny Tagil Mining and Metallurgical College. Brodovo Equipped a medical office in kindergarden and school No. 19, and donated toys and sports equipment. Case study Novokuznetsk Sponsored equipment upgrades in the Electrical machines and devices laboratory in the Kuznetsk Metallurgical School for a Special Parent College.
Sponsored the creation of an educational and production workshop for training students at the Novokuznetsk In December the online project School for a Special Parent Transport and Technological College. was launched, at the initiative of EVRAZ and with support from the Charitable Foundation for Children and Adults Sponsored setting up a workshop to improve the quality of training for electricians at the Kuznetsk industrial “Gift to an Angel”. Within five months, 30 parents technical school. of children with cerebral palsy from Novokuznetsk Helped equip two classrooms of school No. 81 with modern furniture. and Mezhdurechensk, including employees of EVRAZ ZSMK and Raspadskaya Coal Company, will learn Sponsored the setting up of two scientific and educational centres at the Siberian State Industrial University. about home rehabilitation, assisted by experienced Mezhdurechensk Carried out a major overhaul of Kindergarden No. 18. specialists. Also, each adult has an opportunity to have individual consultations with a psychologist. Tashtagol Sponsored equipment upgrades in welding and locksmith shops in the Tashtagol College of Mining Technologies and Services.
Kaz Funded the repair of the roof of school No. 24
Sports EVRAZ for Cities
Novokuznetsk Installed a multifunctional sports ground, a training area, and a games complex in the suburban area of House EVRAZ endeavours to improve the quality of life of local people by investing in developing urban infrastructures in the towns, cities, of Childhood No. 95 at the Zhemchuzhinka health centre. and regions of operation. We sponsor, finance, and support a number of medical, educational, and cultural projects.
Created a sports complex at the Ringing Pines health camp, a structural subdivision of the Island of Hope orphanage.
Entertainment Case study EVRAZ invests in education and science of Kuzbass Nizhny Tagil, Novokuznetsk, Organised for the children of employees an online quiz called First-class Games. Mezhdurechensk, Kachkanar EVRAZ earmarked over US$596 thousand for setting up the Geoecology Centre and Digital Competence Centre Novokuznetsk Organised online masterclasses to develop voice skills, a sense of humour, yoga, and clowning workshops at the Siberian State Industrial University in Novokuznetsk. The setting up of the Geoecology Centre will allow students for children from orphanages No. 95 and Island of Hope. to develop new skills in the field of ecology, and a corresponding mindset. The centre will include laboratories to test the environmental condition of water and air basins, recycling technologies, as well as a laboratory to carry out chemical Novokuznetsk, Mezhdurechensk, Organised vocal masterclasses for schoolchildren with the help of the group BOSAYA. Tashtagol research.
Nizhny Tagil, Kachkanar Prepared two New Year’s interactive shows for the children of employees. Thanks to the establishment of the Digital Competence Centre, students will be able to master a number of new specialties related to data management. Three laboratories at the centre will allow specialists to effectively solve problems faced Gave New Year gifts to over 20 thousand children. by enterprises in the real and other sectors of the economy.
The centres will accept their first students in 2021. Sustainability report 2020 74 75 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ for Cities projects EVRAZ: City of Friends – City of Ideas
Case study The annual grant contest EVRAZ: City infrastructure and social environments. 24 projects from Siberia and 20 best Urban infrastructure of Friends – City of Ideas is another As part of this contest participants ideas from the Urals were chosen, based Restoration of Tank T-34 EVRAZ initiative to support local showcase project ideas, which on the votes of the residents of the cities in Novokuznetsk communities, and has traditionally are carefully assessed. The most and the professional opinions of EVRAZ Novokuznetsk Installed an openwork cast-iron fence along the pedestrian been held in Nizhny Tagil, Kachkanar, socially significant receive grants experts. zone of Metallurgov Avenue. Tank T-34, made of Kuznetsk Novokuznetsk, and Mezhdurechensk. and are implemented. Equipped a porch and a ramp of a boarding house armour, is a monument to a World The contest consists of a number for people with disabilities with a safety covering. War II labour feat of the workers of projects geared towards engaging In 2020, 44 winners were awarded grants of the Kuznetsk Metallurgical local residents in improving their cities’ totalling US$229 thousand. Mezhdurechensk Sponsored the refurbishment of a pedestrian tunnel. Complex (nowadays part of EVRAZ Sponsored the refurbishment of Prazdnichnaya Square, ZSMK). Together with the Museum including installation of fountains and benches. of Military and Labour Glory of Kuznetsk Metallurgists, the tank Examples of grant-winning projects Installed new lighting on three streets. forms part of a memorial complex on Victory Square in Novokuznetsk. Sheregesh Helped restore a pedestrian street. The tank stood on the pedestal Tashtagol, Sheregesh, Guryevsk, Supplied around 236 thousand tonnes of crushed stone-sand for 47 years. Kaltan mixture for the improvement of social facilities. Novokuznetsk Mezhdurechensk EVRAZ ZSMK specialists Guryevsk Repaired the building of the cinema Yunost and the adjacent spent 450 hours on restoring • Forge of public initiatives • Eco-evolutionary project square. the tank, and almost all divisions Establishing a coworking centre for non-profit organizations. Filming little-explored areas of the Mezhdurechensky Nizhny Tagil, Kachkanar Prepared combined heat and power plants, which provide of the plant took part. On 24 June urban district, to monitor the condition of the environment, heat to the sites of enterprises and residential and social • MILKA School of Cognitive Development and organising ecotrails. 2020, at the Victory Parade School of Cognitive Development for children in challenging life facilities, for the heating season. in Novokuznetsk, the legendary Tank situations and children with disabilities. • Keeping up with the times Nizhnyaya Tura Repair work on the 40 years of October street. T-34 was chosen to be at the front Setting up the information and educational centre Russian of a military convoy. • Summer Sports Republic Museum: virtual branch, a branch of the Virtual Russian Museum Establishing a summer skiing school. in St. Petersburg, at the Mezhdurechensk Exhibition Hall. Culture • Unusual book for unusual children Establishing a library of tactile and educational books Novokuznetsk Restored Tank T-34 for participation in the Victory Parade. for children with disabilities. Together with the Museum of Military and Labour Glory of Kuznetsk Metallurgists, the tank forms part of a memorial complex on Victory Square.
Acted as a partner of the III International Festival of Chamber Performances WINDOWS, dedicated to the 300th anniversary of Kuzbass. Nizhny Tagil Kachkanar Provided grant support to the second Common Cause public forum, dedicated to the digital work of social activists. • WEBIROOM: education without boundaries • Skate park Setting up a remote interactive educational platform Equipped skating area in Valerianovsk to help improve Novokuznetsk, Mezhdurechensk Took part in the Garden of Memory campaign, including in the Nizhny Tagil system of additional education for organising the health of locals and promote a healthy lifestyle. donating tree seedlings and helping to plant them. various online events. Mezhdurechensk Purchased a LED monitor, an acoustic system, and a mixing • Youth library – modern space console for the Raspadskiy Palace of Culture. • Movement is life Renovating the Kachkanar city library named after Selyanin. Buying modern sports equipment for a rock climbing centre Created a more user-friendly and welcoming space for visitors. Nizhny Tagil Sponsored staging of the play “Demidovs” at the Nizhniy Tagil to promote health and sports. Drama Theater. • Playbill art object • City of familiar heroes Installation of a new art object called Playbill on Palace Ust-Utka village Sponsored setting up the Ust-Utka village museum of history. Creating a series of historical animated films, with elements of Culture square. of documentaries, about the development of the Ural land, Dubna (Tula Region) Sponsored the restoration of the Masolov Estate the founders of the city of Nizhny Tagil, the first factories, and establishing a History of metallurgy museum. interesting facts, and people.
Medical institutions
Novokuznetsk Donated a portable ultrasound machine to Novokuznetsk Municipal Clinical Hospital No. 1.
Tashtagol Funded the purchase of medical equipment and cars for the Tashtagol regional hospital. Sustainability report 2020 76 77 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ for Sports projects Case study Intensive project management course Sports institutions
EVRAZ and RUSAL jointly hosted the third intensive course “Create. Implement. Evaluate”. in Novokuznetsk. Novokuznetsk Supplied materials for the construction of the Kuzbass Ice Sports Palace. The programme of the main educational event, for participants of the grant competition EVRAZ: City of Friends – City of Ideas! and the RUSAL social programme School of Urban Change, was aimed at both beginners and professionals Tula Sponsored the participation of the Thai Boxing Federation athletes in competitions. in the field of social design. Kachkanar Sponsored the participation of the sports school Sambo and Judo in away competitions.
For three days invited experts shared project management best practices and related methods with employees Sponsored the participation of the Olymp sports school’s football team in away competitions. from municipal organisations, representatives of NGOs, and socially active residents of cities. Issues related to the development, implementation, and management of projects were discussed. Helped create and improve the communal infrastructure of the Martial Arts Palace. Sponsored the construction and equipping of a multifunctional sports complex, the children’s sports school This year seminars and trainings were held in a Zoom format, which made it possible to attract around 500 participants Rhythm. from 80 Russian cities, including cities where EVRAZ and RUSAL enterprises are located – from the Urals to Siberia. Sports events
Novokuznetsk Organised a cross-country skiing event at the Novoilinsky district track.
Supported the organisation of the Ski Track of Russia – 2020 mass race event. EVRAZ for Sports Organised a volleyball tournament with the participation of the Moscow volleyball team Dynamo.
EVRAZ pays close attention to the health by developing the sports infrastructure of professional and amateur sports Organised an open winter football championship at the Abagursky branch. and well-being of employees and local and equipping sports organisations by organising sports events, as well residents. The Group strives to provide in the regions where we operate. as sponsoring various teams. Organised an e-sports competition for Abagursky branch employees. healthy lifestyle opportunities EVRAZ also supports the development Created a series of video training sessions with the participation of employees.
Organised a track and field event for employees in the Garden of Metallurgists.
Organised sports competitions Mom, Dad, and I are a sports family! In the Garden of Metallurgists. Case study Kachkanar Organised a track and field race called Health Path for employees of the branch. Kachkanar, Nizhny Tagil Organised the Five Peaks ski trip in collaboration with the trade union committee and Uralets sports club. 6th High-Five! Race Nizhny Tagil Organised shooting competitions “Cup of the cities of the Urals and Siberia”.
In 2020 EVRAZ decided not to cancel the High Five! Race Tashtagol Held the 17th Andrey Sevenyuk corporate alpine skiing and snowboarding competition. and conducted it online, so as not to expose participants to any COVID-19-related risks. The race was organised Tula Organised pre-competition training events for Paralympic athletes. for the sixth time, and this year brought together hundreds of participants from 36 cities aged from 2.5 to 70. Each had an opportunity to independently choose a personal race Sponsorship route, and then share their result on the event’s website, compare it with the results of other participants, and receive Novokuznetsk Sponsored the Bars team of paintball players. an e-diploma for taking part. For those who wanted to get in shape before the competition, an online training course Kachkanar Sponsored the Gornyak-EVRAZ football club. was created, consisting of 16 videos prepared by invited Tula Began sponsoring the professional football club ARSENAL. trainers. Nizhny Tagil Sponsored the Uralochka-NTMK volleyball club.
Sponsored participation in competitions and purchasing sports equipment and ammunition for young taekwondo fighters, athletes and volleyball players.
Supporting development of the youth bandy team. Sustainability report 2020 78 79 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
EVRAZ VOLUNTEERING OTHER NEW PROJECTS
For many years, volunteers from various as environmental initiatives. The high of volunteering activities in corporate In 2020 EVRAZ implemented a number The film Mission – To Win: EVRAZ became a partner EVRAZ divisions have been actively level of self-organisation and social media helps keep the involved employees of unique initiatives in the cultural history of metallurgists of the regional song festival involved in voluntary activities in the areas responsibility of employees allows motivated and contributes to the further sphere. This included projects to support in World War II Vysotsky in Novokuznetsk of supporting children in challenging life the Group’s volunteering movement to exist development of the movement. the historical heritage of various regions, situations and orphans, through organising without any formalisation or coordination as well as participating in organising This film is devoted to the heroism EVRAZ became a partner of the regional social, cultural, and sports events, as well by management. Regular coverage musical events. displayed by metallurgists and miners song festival Vysotsky in Novokuznetsk. during World War II and was created Over 70 singers took part in the event, EVRAZ NTMK electronic time by EVRAZ to mark the 75th anniversary which was timed to coincide with the 75th capsule of victory in that war, and was dedicated anniversary of the Great Victory in World to EVRAZ employees that worked War II. People competed in five main To mark the 80th anniversary of EVRAZ in factories during the war years. Mission – nominations: Best author, Best performer, NTMK, an electronic time capsule to Win received over 990,000 views Best ensemble, Best dedication to Vysotsky, Case study with video messages for future metallurgists on various platforms, including YouTube, and Best performance of a song was installed at the plant. Vkontakte, and Odnoklassniki. by Vysotsky. The festival was held Online master classes for orphans for the 19th time, and is a well-established The capsule will store for future EVRAZ became a general and popular cultural event for the people EVRAZ ZSMK volunteers organised a number of development generations short video messages partner of the III International of Novokuznetsk. activities for orphans and children left without parental care, from metallurgists and residents of Nizhny Festival of Chamber as part of the support programme for orphanages No. 95 Tagil and Kachkanar. Anyone could record Performances WINDOWS and Island of Hope. For the first time, our team of active a message; in order to do so, they had and creative employees communicated with children online to make a video and post it on a social EVRAZ participated in organising and organised for them a series of masterclasses on voice network. 72 people took part in the project, the III International Festival of Chamber development, sense of humour development, clowning and during the preparation of the film, Performances WINDOWS, which was held workshops, and yoga. EVRAZ NTMK collected 100 GB and 2,160 online this year by the Novokuznetsk minutes’ worth of material. Drama Theatre. This time, the festival was dedicated to the 300th anniversary At the moment the capsule is sealed, of Kuzbass, and its main theme was Theatre and a countdown clock is ticking in an Industrial Space. The festival on the project website. The video will programme, which has already become be available on Metallurgist Day in 2040, a tradition in Novokuznetsk, included 20 when EVRAZ NTMK celebrates its 100th performances created not earlier than anniversary. 2015. Every week, from 16 September to 16 December on the YouTube channel of the Novokuznetsk Drama Theatre foreign and Russian chamber performances were broadcasted. Also, within the framework of the festival, masterclasses Case study and public talks were held with the creators of the performances. The participants Garden of Memory public action exchanged views on how modern theatre and industrial cities can influence each EVRAZ volunteers took part in a Garden of Memory public other. action. Workers from enterprises provided tree saplings to Novokuznetsk and Mezhdurechensk and helped plant them. Employees from the Esaulskaya, Erunakovskaya-8, and Uskovskaya mines bought and delivered 54 seedlings of young rowan and apple trees for an alley of remembrance in the village of Staraya Ilyinka. And volunteers from COF Kuznetskaya donated 40 seedlings to decorate the Park GOALS FOR 2021 of Labour and Military Glory in the Kuznetsk District. AND THE MIDTERM
Local community development helps In the future, the Group plans to continue within which we form and implement create tangible value for all. We have active work in the framework of the main various projects. a vested interest in the prosperity of our directions of external social and charitable stakeholders and in maintaining productive support. EVRAZ for sport, EVRAZ for kids and open relationships with them. and EVRAZ for cities - these are the areas Sustainability report 2020 80 81 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Responsible supply THE GROUP’S SUPPLY CHAIN chain management GRI 102–9 EVRAZ is a vertically integrated steel the production of steel and steel products enterprises producing vanadium products for a Better Future and mining company operating and the extraction of iron ore and coking and a number of other categories of raw in six countries. Most of our assets coal, with its own ore and coal base materials. are located in Russia. The Group’s covering almost all of EVRAZ’s internal main lines of business comprise needs. In addition, the Group has 2020 highlights Material topics Key events EVRAZ supply chain
Procurement practices • Revision of the Policy on the Basic SUPPLIERS 35.7% Principles of Procurement Activities. • Introduction of the internal share of local suppliers in total marketplace. Iron ore products spending • Launch of the TOP-100 programme.
Coking coal • Required competences. • Reliability. • ESG requirements, including Scrap metal issues of human rights, corruption Global Sustainable Development Goals and environmental impact. • Compliance with the Group’s Ferroalloys HSE regulations. Auxiliary materials
Equipment
Industrial services
Construction products
• Product quality. Railway products • Environmental requirements. • Social requirements. Tubular products
Industrial products
Vanadium products
Raw materials
CONSUMERS Sustainability report 2020 82 83 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI 102–10 Spending on local and other suppliers MANAGEMENT APPROACH and share of total spending on local EVRAZ seeks to create favourable is 12,379, with total spending on their suppliers by business segments1, 2020 conditions to foster the socio-economic products and services standing GRI 102-9 development of our regions of operation at almost US$3,028 million. The share GRI 204–1 and actively cooperates with local of local suppliers in spending stood Supplier engagement is regulated EVRAZ realises that the success EVRAZ aims to expand the automation suppliers. We don’t discriminate suppliers at 35.7% (US$1,081 million). The fall 76.4% by the Group’s Policy on the Basic of the procurement department depends of procurement stages in order on any ground and always ready for open in comparison to the previous year Principles of Procurement Activities on the professional and leadership skills to ensure a high level of transparency and transparent cooperation. (43.5%) was due to the change in our and the Supplier Code of Conduct. of its employees, therefore, it actively and efficiency. In 2020 up to 80% definition of local suppliers for EVRAZ 38.9% In 2020 the Supplier Code of Conduct involves them in development programmes. of purchases were made via electronic 2020 saw no significant changes ZSMK: in 2020 the Group’s internal 35.7% was updated. Another change In 2020 the TOP-100 programme trading platforms. A key project in 2020 in the EVRAZ supply chain in terms suppliers were excluded from calculation 24.8% in procurement management relates was launched. Its 86 participants was the introduction of a marketplace: of the location of our suppliers. in the corresponding segment. to the Transformation of the Supply Chain are directors and heads of the enterprises an online store to enable internal users The total number of EVRAZ suppliers project, whose implementation is ongoing. of the trading circuit and supply department of EVRAZ to order low-value goods Steel Coal Steel, Total segment segment North In 2020 the process of centralising of EVRAZ. As part of the programme, and materials without having to interact America procurement functions continued our specialists undergo goal-setting with procurement managers. Currently segment and responsibility for purchasing services and employee development trainings, the store allows goods to be purchased Spending on local suppliers in all Russian divisions was transferred in addition to trainings in effective in 12 categories, and delivery times Spending on suppliers from other regions to the Management Company. We also management and other skills. Furthermore, have been reduced to 48 hours thanks Share of spending on local suppliers continued to create cross-divisional teams in 2020 our procurement specialists to the automation of the process and centralising some functions at division from the Management Company began and a reduction in the number of links level. More information on the EVRAZ to actively engage with representatives in the order chain. GOALS FOR 2021 procurement management system of EVRAZ foreign branches, with a view is available in our 2019 Sustainability Report. to sharing experience. AND THE MIDTERM
Ensuring the sustainability of our supply chain is a significant area for the Group, and we are endeavouring to improve how this aspect of our business is managed. PROMOTING SUSTAINABILITY Taking into account the Group’s current policies, supply chain strategy, and current THROUGHOUT THE SUPPLY CHAIN results vis-à-vis the implementation of the procurement function’s development plan, various targets for next year and the midterm have been set. EVRAZ, as a global company, is committed from the company’s representatives. During where stringent health and safety, to ensuring the integration of sustainability the assessment period of potential suppliers environmental, social, and ethical standards In 2021 EVRAZ will continue its efforts principles, not only in our internal activities our Procurement Commission checks are established with a view to ensuring to enhance procurement practices, and processes, but also in the overall information contained in forms completed a sustainable supply chain. by undertaking the following measures: system of partners created by the Group. by supplier representatives related • Improving the online store by expanding By setting high standards for suppliers, to adhering to a responsible approach the list of categories of purchased EVRAZ encourages its potential to HSE issues. For EVRAZ, non-compliance materials and equipment. partners’ to comply with our principles with regulations in the field of HSE is one • Increasing the popularity of the mobile of sustainability. of the grounds for rejecting a partnership. app for customers, by offering additional services. The EVRAZ Supplier Code of Conduct can To assess suppliers, including the safety A comprehensive description of our be accessed on our official website • Transferring repetitive operations to back- of their practices, we use field inspections requirements for suppliers is set forth https://www.evraz.com/files/en/ offices. Creating unified and standardised and supplier audits and collect feedback in the EVRAZ Supplier Code of Conduct, evraz-supplier-code-of-conduct-en.pdf → procurement processes for all divisions. • Boosting the efficiency of procurement officers via trainings in application software (SAP, SRM, MDG, Excel), as well as continuing training for leaders under the TOP-100 programme. • Other projects within the road map for 2021.
1. Business units of Steel, North America segment, as well as EVRAZ Nikom and EVRAZ Caspian Steel, consider all suppliers at the country level as local. Other units of Steel segment and Coal segment define local suppliers as those from the regions where the Group’s enterprises operate. Sustainability report 2020 84 85 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
APPENDIX 1 – ABOUT THIS REPORT Approach to identification of material topics
2. STAKEHOLDER FEEDBACK 3. COMPILING A LIST 1. OPEN SOURCE ANALYSIS COLLECTION AND ANALYSIS OF MATERIAL TOPICS GRI 102–46 GRI 102-52 APPROACH TO REPORTING • Analysis of industry trends and risks. • Interviews with members of the Working • Approval of the list of material topics • Analysis of public sources Group, comprising representatives by the Working Group. GRI 102–50 a separate report specifically dedicated to ensure compliance with GRI Standards, about the Group. from functional units engaged The 2020 Sustainability Report to sustainability. The Group’s most the Group’s internal procedures relating • Benchmarking material topics disclosed in managing sustainability related issues. (“the Report”) covers the key results recent reports, together with additional to the Report’s preparation were reviewed. by peers. • Analysis of internal/external stakeholder of EVRAZ’s sustainability performance information about its sustainability • Aligning the preliminary list of material requests and survey results. between 1 January 2020 and 31 December performance, can be accessed on EVRAZ’s The Report describes EVRAZ’s sustainable topics with the sustainability 2020, and includes the Group’s plans official website: http://www.Evraz.com/ru/ development management practices goals identified as being relevant for 2021 and the medium term. investors/annual_reports. → and was prepared in accordance for the Group and for investors. with the interests of the investment EVRAZ has been preparing annual GRI 102–54 community and other stakeholders. reports since 2004, which incorporated In 2020, the Report was prepared The Report is published in both English an extended chapter on Corporate Social in compliance with Global Reporting and Russian languages. • Preliminary list of material topics. • Updated list of material topics. • Agreed list of material topics Responsibility (CSR). In 2018 EVRAZ Initiative Sustainability Reporting Standards: to be included in the Report. took the decision to start publishing Core option (“GRI Standards”). In order
REPORT BOUNDARIES In 2020, we indicated 20 material management and freedom of association of members of the Working Group topics, including four new topics: taxes, and collective bargaining. These topics about the preparation of the Report, held risk management, carbon and energy were also prioritised through a survey in December 2020. Information contained in this Report covers the sustainability performance of the following EVRAZ assets, unless otherwise indicated in the text of the Report: Matrix of material topics of the Report GRI 102–45 Assets included in the Report boundaries
High Segment Enterprise (referenced in the Report) 16 14 Steel segment EVRAZ Consolidated West-Siberian Metallurgical Plant (EVRAZ ZSMK) (including Evrazruda) 9 1 8 EVRAZ Nizhny Tagil Metallurgical Plant (EVRAZ NTMK) 11 EVRAZ Kachkanarsky Mining-and-Processing Integrated Works (EVRAZ KGOK) 13 EVRAZ Caspian Steel 12 EVRAZ Vanady Tula 17 EVRAZ Nikom 4 19 Coal segment Raspadskaya Coal Company 15 18 Steel, North America segment EVRAZ Inc. NA (including, EVRAZ Portland, EVRAZ Pueblo) 10 EVRAZ Inc. NA Canada (including EVRAZ Camrose, EVRAZ Red Deer, EVRAZ Calgary, EVRAZ Regina) 7 20 3 Other Sales, services, and logistics companies
5
2 6 GRI 102–46 IDENTIFICATION OF MATERIAL TOPICS
We conducted a materiality assessment stakeholder feedback and drawing up criteria were used: the significance Low Significance of Economic, Environmental & Social Impacts on and from EVRAZ High to identify topics that are most essential a list of material topics. The materiality of economic, environmental, or social for the business for disclosure in the report. assessment was performed in compliance impacts and the influence on stakeholder Economic category Ecological category Social category The assessment comprised three main with GRI Standards. When assessing assessments and decisions. stages: analysis of open sources, collecting whether a topic is material, two main Sustainability report 2020 86 87 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI disclosure requirements were met equally for all topics, irrespective of the priority level. At the same time, topics with a high level of materiality were given special attention in terms of the level of additional detail provided in the Report. DATA PREPARATION METHODOLOGY
Material topics The calculation, collection, for conversion purposes the average US report via these forms to local governments GRI 102–47 and consolidation of economic, dollar exchange rate for 2020 adopted and the Group’s management. environmental, and social indicators by the Central Bank of Russia was used. Category № Topic Page number Within the Group Outside the Group presented in the Report were carried In order to ensure the comparability out in compliance with GRI Standard Performance indicators, as well as data of data, the most significant indicators Economic 1 Economic performance 25 V V reporting principles and requirements on sustainable development, are presented related to the Group’s activities and on the basis of the current in units of the International System of Units (SI). are presented for the previous three years. 2 Market presence 32 V V procedures in place for collecting 3 Indirect economic impacts 71 V V and preparing management information Sources of information related to personnel In 2020 we made the change in our in the Group. management, labour protection, industrial definition of local suppliers for EVRAZ 4 Anti-corruption 13 V V safety, and environmental protection ZSMK: the Group’s internal suppliers Financial information is presented in US are mandatory state statistical forms. were excluded from calculation 5 Procurement impacts 82 V V dollars. If amounts were in Russian roubles, On an annual basis relevant departments in the corresponding segment.
6 Taxes 23 V –
7 Risk management 17 V V
Environmental 8 Energy 64 V V GRI 102–56 9 Water and Effluents 55 V V
10 Biodiversity 58 V V ASSURANCE
11 Emissions 60 V V The Group engaged EY to provide independent assurance of the Sustainability Report in order to ensure the quality, accuracy, 12 Waste 56 V V and completeness of the reported data (see Independent practitioner’s assurance report on page 102–103 →).
13 Environmental compliance 51 V – GRI 102–53 14 Carbon and energy management 60 V V
Social 15 Employment 26 V V CONTACT INFORMATION
16 Occupational health and safety 41 V V The Group considers and carefully We always welcome your suggestions 17 Training and education 31 V – analyses feedback from stakeholders about the Report and our performance. on the completeness, objectivity, Please send any questions and suggestions 18 Diversity and equal opportunity 28 V V and materiality of information disclosed you have to: 19 Local communities 68 V V in its sustainability reports, which helps improve our sustainability performance IR Department 20 Freedom of association and collective 34 V – and non-financial reporting processes. Moscow: +7 (495) 232–13–70 bargaining E-mail: [email protected] Sustainability report 2020 88 89 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
APPENDIX 2 – GRI CONTENT INDEX
GRI 102-55
GRI Disclosure Page number (or link) Comments/ Omissions GRI Disclosure Page number (or link) Comments/ Omissions Indicator Indicator GRI 102 General disclosures GRI 102–43 Approach to stakeholder engagement Stakeholder engagement, p. 19 1. Organizational profile GRI 102–44 Key topics and concerns raised Stakeholder engagement, p. 19 GRI 102–1 Name of the organization About the Group, p. 5 6. Reporting practice
GRI 102–2 Activities, brands, products, What we produce, p. 7 GRI 102–45 Entities included in the consolidated Report boundaries, p. 84 and services financial statements
GRI 102–3 Location of headquarters About the Group, p. 5 GRI 102–46 Defining report content and topic Approach to reporting, p. 84 boundaries GRI 102–4 Location of operations Where we operate, p. 6 GRI 102–47 List of material topics Identification of material topics, p. 85
GRI 102–5 Ownership and legal form EVRAZ plc GRI 102–48 Restatements of information Due to recalculation some indicators (number of employees, GRI 102–6 Markets served Who we are, p. 5 water consumption, emissions, occupational illnesses) have GRI 102–7 Scale of the organization Where we operate, p. 6 been slightly changed compared What we produce, p. 7 to disclosures in the Annual Report 2020. GRI 102–8 Information on employees and other Human rights, p. 36 Total number of employees workers by employment contract (permanent GRI 102–49 Changes in reporting No significant changes and temporary) is disclosed from previous reporting periods by gender only. in the list of material topics and topic Boundaries were made. GRI 102–9 Supply chain The Group’s supply chain, p. 81 In 2020, the Group defined taxes as material topic and thus disclosed GRI 102–10 Significant changes to the organization Promoting sustainability throughout the supply chain, 207 GRI Standard. and its supply chain p. 82 GRI 102–50 Reporting period Approach to reporting, p. 84 GRI 102–11 Precautionary Principle or approach Sustainability risk management, p. 17 GRI 102–51 Date of most recent report April, 2020 GRI 102–12 External initiatives Approach to sustainability management, p.9 GRI 102–52 Reporting cycle Approach to reporting, p. 84 GRI 102–13 Membership of associations Memberships of associations and institutions, p. 23 GRI 102–53 Contact point for questions regarding Contact Information, p. 87 the report 2. Strategy GRI 102–54 Claims of reporting in accordance Approach to reporting, p. 84 GRI 102–14 Statement from senior decision-maker Message from the CEO, p. 2 with the GRI Standards
3. Ethics and integrity GRI 102–55 GRI content index Appendix 2 – GRI Content Index, p. 88 GRI 102–56 External assurance Independent practitioner’s assurance report, p. 102 GRI 102–16 Values, principles, standards, Ethics and business conduct, p. 13 and norms of behavior Material topics 4. Governance GRI 200 Economic GRI 102–18 Governance structure Organisational structure, p. 12 GRI 201 Economic performance
5. Stakeholder engagement GRI 103 Management Approach Direct economic value generated and distributed, p. 25 GRI 102–40 List of stakeholder groups Stakeholder engagement, p. 19 GRI 201–1 Direct economic value generated Direct economic value generated and distributed, GRI 102–41 Collective bargaining agreements Interaction with employees, p. 34 and distributed p. 25
GRI 102–42 Identifying and selecting stakeholders Stakeholder engagement, p. 19 GRI 201–2 Financial implications and other risks Climate change, p. 62 and opportunities due to climate change Sustainability report 2020 90 91 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI Disclosure Page number (or link) Comments/ Omissions GRI Disclosure Page number (or link) Comments/ Omissions Indicator Indicator GRI 202 Market Presence GRI 302–3 Energy intensity Boosting energy efficiency, p. 64 Energy intensity is disclosed for a limited number of enterprises GRI 103 Management Approach Motivation, p. 32 that are stated in the text of relevant section. GRI 202–1 Ratios of standard entry level wage Motivation, p. 32 by gender compared to local minimum GRI 303 Water wage GRI 103 Management Approach Health, safety, and environmental governance, p. 39 GRI 203 Indirect Economic Impacts GRI 303–1 Interactions with water as a shared Health, safety, and environmental governance, p. 39 GRI 103 Management Approach Management approach, p. 69 resource Balancing water supply, p. 55
GRI 203–1 Infrastructure investments and services Local community support projects, p. 71 GRI 303–2 Management of water discharge- Balancing water supply, p. 55 supported related impacts
GRI 203–2 Significant indirect economic impacts Local community support projects, p. 71 GRI 303–3 Water withdrawal Balancing water supply, p. 55 Water withdrawal is disclosed as a specific indicator per US$ thousand revenue. GRI 204 Procurement practices GRI 303–4 Water discharge Balancing water supply, p. 55 The indicator disclosed in part, GRI 103 Management Approach Management approach, p. 82 without breakdown by type of destination, however discharges GRI 204–1 Proportion of spending on local Promoting sustainability throughout the supply chain, The information concerning from steel production and mining suppliers p. 82 the share of local suppliers activities are shown separately. is disclosed only for ZSMK, KGOK, NTMK, Vanady Tula GRI 303–5 Water consumption Balancing water supply, p. 55 Total water consumption is disclosed and Raspadskaya Coal Company for EVRAZ. The breakdown of water due to data collection unavailability consumption by sources is disclosed in other segments. for EVRAZ overall, as well as for each reporting segment. GRI 205 Anti-corruption GRI 304 Biodiversity GRI 103 Management Approach GRI 103 Management Approach Health, safety, and environmental governance, p. 39 GRI 205–2 Communication and training Ethics and business conduct, p. 13 about anti-corruption policies GRI 304–1 Operational sites owned, leased, Health, safety, and environmental governance, p. 39 Though EVRAZ’s enterprises and procedures managed in, or adjacent to, protected Protecting biodiversity, p. 58 are located far from protected areas and areas of high biodiversity natural areas or territories with high GRI 205–3 Confirmed incidents of corruption Ethics and business conduct, p. 13 value outside protected areas biodiversity value, and the activities and actions taken of the Group do not have a direct significant impact on biodiversity, GRI 207 Tax 2019 we still consider biodiversity issues one of the challenges to take action. GRI 103 Management Approach Tax liabilities, p. 23 GRI 304–3 Habitats protected or restored Protecting biodiversity, p. 58 Information concerning habitats GRI 207–1 Approach to tax Tax liabilities, p. 23 protected or restored is disclosed as the size of areas rehabilitated. GRI 207–2 Tax governance, control, and risk Tax liabilities, p. 23 management GRI 305 Emissions
GRI 207–3 Stakeholder engagement Tax liabilities, p. 23 GRI 103 Management Approach Health, safety, and environmental governance, p. 39 and management of concerns related to tax GRI 305–1 Direct (Scope 1) GHG emissions GHG emissions, p. 63
GRI 207–4 Country-by-country reporting Tax liabilities, p. 23 GRI 305–2 Energy indirect (Scope 2) GHG GHG emissions, p. 63 emissions GRI 300 Environmental GRI 305–4 GHG emissions intensity GHG emissions, p. 63 Intensity of GHG emissions (kgCO2e/US$) is calculated GRI 302 Energy as GHG emissions divided GRI 103 Management Approach Boosting energy efficiency, p. 64 by consolidated revenue, broken down by the reporting segments. GHG emissions intensity is also GRI 302–1 Energy consumption within Boosting energy efficiency, p. 64 Energy consumption is disclosed disclosed as a specific metric per the organization for a limited number of enterprises tonne of crude steel (tCO2e per that are stated in the text of relevant tonne of crude steel). section. Sustainability report 2020 92 93 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
GRI Disclosure Page number (or link) Comments/ Omissions GRI Disclosure Page number (or link) Comments/ Omissions Indicator Indicator GRI 305–5 Reduction of GHG emissions GHG emissions, p. 63 In 2020, EVRAZ reduced its Scope GRI 403–2 Hazard identification, risk assessment, Health and Safety management, p. 41 2 emissions by 2.8%. This was due and incident investigation OHS Regulations, guidelines and policies, p. 42 to lower steel production at the Group’s North American asset GRI 403–3 Occupational health services Health and Safety management, p. 41 and a decrease in electricity HS initiatives and projects in 2020, p. 42 purchases by Russian steel mills. GRI 403–4 Worker participation, consultation, Health, safety, and environmental GRI 305–7 Nitrogen oxides (NOX), sulfur oxides Reducing air emissions, p. 52 Key air emissions of EVRAZ include and communication on occupational governance, p. 39 (SOX), and other significant air SOx, NOx, VOC, PM. health and safety emissions GRI 403–5 Worker training on occupational health Developing the safety culture, p. 44 GRI 306 Effluents and waste and safety GRI 403–6 Promotion of worker health Health protection, p. 47 GRI 103 Management Approach Health, safety, and environmental governance, p. 39 GRI 403–7 Prevention and mitigation Health and Safety management, p. 41 GRI 306–1 Waste generation and significant waste- Health, safety, and environmental governance, p. 39 of occupational health and safety HS initiatives and projects in 2020, p. 42 related impacts Waste stewardship, p. 56 impacts directly linked by business Developing the safety culture, p. 44 GRI 306–2 Management of significant waste- Waste stewardship, p. 56 relationships related impacts GRI 403–8 Workers covered by an occupational International standards, p. 42 GRI 306–3 Waste generated Waste stewardship, p. 56 The information is disclosed health and safety management system for the following: GRI 403–9 Work-related injuries Occupational injury prevention, p. 46 Injury rates are not included • total non-mining waste data on contractors. In 2020, and by-product generated the Company began collecting by EVRAZ enterprises. information on number of hours • shares of waste generated worked by contractors. and received. GRI 403–10 Work-related ill health Health protection, p. 47 There are no available statistics GRI 306–4 Waste diverted from disposal Waste stewardship, p. 56 on the number of fatalities as a result of work-related ill health. GRI 306–5 Waste directed to disposal Waste stewardship, p. 56 The Group doesn’t collect data on contractors. GRI 307 Environmental compliance GRI 404 Training and education GRI 103 Management Approach Environmental management, Management approach, p. 51 GRI 103 Management Approach Learning and development, p. 31
GRI 307–1 Non-compliance with environmental Environmental management, Management approach, We make efforts to be compliant GRI 404–1 Average hours of training per year per Learning and development, p. 31 laws and regulations p. 51 with all applicable environmental employee regulation and consistent with the expectations of our GRI 404–2 Programs for upgrading employee skills Learning and development, p. 31 stakeholders. and transition assistance programs GRI 400 Social GRI 405 Diversity and equal opportunity GRI 401 Employment GRI 405 Management Approach Personnel profile, p. 28 GRI 405–1 Diversity of governance bodies Personnel profile, p. 28 GRI 103 Management Approach Our people, Our approach, p. 26 and employees GRI 401–1 New employee hires and employee Personnel profile, p. 28 Employee turnover is disclosed GRI 407 Freedom of association and collective bargaining turnover by reporting segments only GRI 103 Management Approach Interaction with employees, p. 34 GRI 401–2 Benefits provided to full-time Motivation, p. 32 EVRAZ provides the same benefits employees that are not provided both to full-time and part-time GRI 407–1 Operations and suppliers in which Interaction with employees, p. 34 to temporary or part-time employees employees the right to freedom of association and collective bargaining may be at risk GRI 403 Occupational health and safety GRI 413 Local communities GRI 103 Management Approach Health, safety, and environmental governance, p. 39 GRI 103 Management Approach Management approach, p. 69 Health and Safety management, p. 41 GRI 413–1 Operations with local community Management approach, p. 69 GRI 403–1 Occupational health and safety Health, safety, and environmental engagement, impact assessments, Local community support projects, p. 71 management system governance, p. 39 and development programs Health and Safety management, p. 41 Sustainability report 2020 94 95 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
APPENDIX 3 – UN GLOBAL COMPACT COMMUNICATION ON PROGRESS
This section provides structured information to EVRAZ stakeholders on the Group’s sustainability-related policies, programmes and performance and serves as our Communication on Progress (COP) to the United Nations Global Compact.
Principle Practical actions taken Measurement of current Section of the Report Principle Practical actions taken Measurement of current Section of the Report or expected outcomes for more detailed or expected outcomes for more detailed information information Human rights Environment
Principle 1: In 2020 EVRAZ elaborated the Human Rights • High employee awareness Our people, p. 26 Principle 7: In 2020 EVRAZ updated the Environmental Goals set by EVRAZ for the period Environmental Businesses should support Policy and Diversity Policy, which comply on human rights issues. Ethics and business Businesses should support strategy, which contains a framework up to 2030: management, p. 50 and respect the protection with international guidelines and standards • Enhanced work environment conduct, 13 a precautionary approach for ensuring environmental compliance Water: of internationally proclaimed on human rights. where employees are treated to environmental challenges and mitigating against any potential adverse • Zero wastewater discharges human rights In order to reduce the risk of legal violations with respect and that is free Principle 8: environmental impacts. from steel production. Principle 2: the treatment of EVRAZ’s workers is monitored from discrimination of any kind. Undertake initiatives to promote In 2020 the Group has also set new goals Waste: Make sure that they are not by public organisations, including trade unions • Improved efficiency of human greater environmental for the period up to 2030 (with 2019 • Utilise 95% of waste from metal complicit in human rights abuses and representatives from Russia’s Presidential rights violations detection due responsibility as the baseline year), which cover four aspects – production and general waste. Council for Civil Society and Human Rights. to enhancement in the operation Principle 9: water, waste, air emissions, and GHG indicators. • Recycle 50% of mining waste. Anonymous EVRAZ hotline operates 24 hours of EVRAZ Hotline. Encourage the development Air emissions: a day. It helps tracking employee satisfaction and diffusion of environmentally • Reduce total atmospheric levels and record human rights violations. friendly technologies emissions from steel production by 33%. Labour • Reduce dust emissions from coal mining by 1.5 times. Principle 3: In 2020 extensions were made to the Coal • More active and credible Our people, p. 26 GHG emissions: Businesses should uphold Industry and Steel Industry Tariff Agreements interaction of the Group • Reduce specific Scope 1 and 2 the freedom of association signed in line with relevant Russian legislation, with trade unions. GHG emissions from EVRAZ’s and the effective recognition with the active participation of the Group. • Increased scrutiny of modern Steel segments (the Steel of the right to collective EVRAZ conducts risk assessments in the field slavery issues in those areas and North America segments) bargaining of modern slavery to determine which parts of its of business and for those by 20%. Principle 4: own business and supplier and subcontractors suppliers and subcontractors • Utilize 75% of methane The elimination of all forms are at high risk of committing modern slavery where there is a risk (CH4) emitted in the process of forced and compulsory labour acts. The Group engages with its suppliers of committing modern slavery of degassing carried out during Principle 5: regarding modern slavery issues so that they acts. coal mining. The effective abolition of child better understand the steps needed to be taken • Higher awareness of employees labour to prevent any occurrence of modern slavery on the diversity and inclusion Anti-Corruption Principle 6: in their businesses. issues. The elimination of discrimination In 2020 EVRAZ elaborated the Diversity Policy, • Increased employee diversity. Principle 10: In 2020 EVRAZ has begun development of its • The Learning Management Ethics and business in respect of employment which addresses diversity and inclusion issues, Businesses should work against own Learning Management System that will System will enhance conduct, 13 and occupation including the following topics: Board diversity, corruption in all its forms, enable all employees to take courses on anti- the effectiveness of employee recruitment and employment, zero tolerance including extortion and bribery corruption and ethical conduct. training management, towards bullying and harassment, and others. The Group has already elaborated courses as the courses will become on the Code of Business Conduct and the Anti- more frequent and relevant Corruption Policy requirements that contains to the specifics of the Group’s assignments and tests on issues covered operations. in the Anti-corruption Policy and will be assigned to each employee every 2 years. In the reporting period the Group also continued to update its core documents in the area of anti-corruption. Sustainability report 2020 96 97 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
APPENDIX 4 – TASK FORCE APPENDIX 5 – ENVIRONMENTAL ON CLIMATE-RELATED FINANCIAL PERFORMANCE DISCLOSURES
Indicator1 Unit 2018 2019 2020 2020 vs. 2019 Definition Comments № Recommendations Covered in the Report ∆ % 1 Governance Section “GHG emissions” Air Emissions Disclose the organisation’s governance around Climate-related issues are handled within the framework of EVRAZ HSE management climate-related risks and opportunities structure. Issues such as climate change corporate governance, goal setting, and risk Total air thousand 409.20 396.22 381.57 -14.65 -3.7 Total Air Emissions - management are overseen by the Board of Directors at its meetings. Discussions emissions tonnes Emissions excluding Coal of climate-related issues are also held by the HSE Committee, which assists the Board (including key emissions and CH4 of Directors in overseeing the implementation of the Climate strategy. emissions) - Steel production 2 Strategy Section “Sustainability risk management”, table “The Group’s sustainability risks”; Section Disclose the actual and potential impacts “GHG emissions” Total air thousand 273.90 403.19 429.69 26.50 6.6 Total Coal Air Emissions of climate-related risks and opportunities EVRAZ considers climate-related risks and opportunities in its business model. emissions tonnes - including CH4 (98% on the organisation’s businesses, strategy, With a projected rise in global demand for high-quality steel, EVRAZ sees opportunity (including key of total coal emissions) and financial planning where such information for using its vanadium products to assist in transitioning to a low-carbon economy. emissions) - Coal is material Key Air emissions thousand 128.24 128.13 121.30 -6.83 -5.3 tonnes 3 Risk management Section “Sustainability risk management”, table “The Group’s sustainability risks”; Section Disclose how the organisation identifies, assesses, “GHG emissions” SOx thousand tonnes 51.30 45.38 45.11 -0.28 -0.6 Sulfur dioxide (SO2) and manages climate related risks The Risk Management Working Group (at CEO level) is chiefly responsible for collecting NOx thousand tonnes 29.69 28.85 25.52 -3.33 -11.5 Sum of Nitric oxides (NOx) climate risk identification and assessment results for all EVRAZ business processes, as nitrogen dioxide (NO2) and also elaborates measures to reduce the impact of these risks on the Group as a whole. Dust thousand tonnes 45.98 52.44 49.25 -3.19 -6.1 Sum of PM10 and PM25
4 Metrics and Targets Section “GHG emissions”, subsection “2020 results”; VOC thousand tonnes 1.26 1.45 1.42 -0.04 -2.5 Volatile organic Disclose the metrics and targets used to assess Section “GHG emissions”, figures: compounds and manage relevant climate-related risks • “EVRAZ Scope 1 and 2 GHG emissions, million tCO2e”. CO thousand 285.94 272.91 265.53 -7. 39 -2.7 Carbon Monoxide (CO) and opportunities where such information • “EVRAZ Main Scope 1 emissions, million tCO2e”. tonnes is material • “EVRAZ GHG emissions by segment in 2020, million tCO2e”. • “Specific Scope 1 and 2 GHG emissions from steel production (Steel and North CH4 thousand 267. 85 397. 78 425.16 27.39 6.9 CH4 disclosed America segments), tCO2e/tcs”. tonnes in greenhouse gas • “GHG emissions per consolidated revenue, kgCO2e/ US$”. emissions (in million tonnes CO2e) Other thousand 3.32 3.09 1.49 -1.6 -51.7 excl. CH4, see tonnes “Greenhouse Gases “ Greenhouse Gases GHG Scope 1 Million tonnes 34.56 39.06 39.48 0.42 1.1 Direct GHG emissions; Direct GHG emissions CO2e sum of CO2 equivalent are emissions of CO2, CH4, N2O, PFC, from sources that HFC, SF6 and NF3 are owned or controlled by EVRAZ CO2 Million tonnes 26.86 27.96 27.78 -0.18 -0.6 Carbon dioxide (CO2) Direct CO2 emissions CO2e from operations were calculated using CH4 Million tonnes 7.6 4 11.04 11.64 0.60 5.4 CO2 equivalent the carbon balance CO2e of methane (CH4) emission method for carbon N2O Million tonnes 0.06 0.06 0.06 0.00 -1.2 CO2 equivalent of nitrous flows within production CO2e oxide (N2O) emission facilities, including fuel use. Emissions of other PFC and HFC Million tonnes 0.00009 0.00002 0.00012 0.00 648.0 CO2 equivalent GHGs were calculated CO2e of hydrofluorocarbons based on measured & perfluorocarbons volumes, inventory emissions changes or IPCC 2006 SF6 Million tonnes - - - - - CO2 equivalent of sulphur factors and models CO2e hexafluoride (SF6) (including for post- emissions mining coal methane emissions) where direct NF3 Million tonnes - - - - - CO2 equivalent of nitrogen measurement data CO2e trifluoride (NF3) emissions were not available. 1. For more information about the Group’s governance around climate-related risks and opportunities, risk management processes, strategy and metrics used to assess climate-related risks and opportunities please see our official website. → 1. Due to mathematical rounding, some totals or percentages may slightly differ from the values of the separate figures. Sustainability report 2020 98 99 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Indicator1 Unit 2018 2019 2020 2020 vs. 2019 Definition Comments Indicator1 Unit 2018 2019 2020 2020 vs. 2019 Definition Comments ∆ % ∆ % GHG Scope 2 Million tonnes 4.23 4.28 4.14 -0.14 -3.3 Indirect GHG emissions Scope 2 emissions public network million m3 15.34 16.19 15.54 -0.65 -4.0 CO e from consumption are emissions associated 2 other sources million m3 5.77 4.90 5.06 0.17 3.4 of purchased electricity, with the generation heat or steam of electricity, heating/ Mine and quarry million m3 17.36 21.22 24.29 3.07 14.4 cooling, or steam water usage purchased by EVRAZ for production assets for own needs consumption. Scope 2 emissions were estimated mine water million m3 11.01 13.70 15.45 1.75 12.8 using emission factors quarry water million m3 6.35 7. 52 8.83 1.31 17.4 specifically developed for the country or region, Steel segment: million m3 183.18 164.66 162.22 -2.44 -1.5 EVRAZ NTMK, EVRAZ if available, or otherwise fresh water intake ZSMK, EVRAZ DMZ factors provided for production (was sold in 2018), EVRAZ by UK Defra or given needs Vanady Tula, EVRAZ in National Inventory Caspian Steel, EVRAZ Reports. Palini e Bertoli, EVRAZ Nikom, EVRAZ Stratcor, Total GHG Million tonnes 38.79 43.35 43.63 0.28 0.6 Calculation perimeter EVRAZ Inc. NA (including CO2e includes the following EVRAZ Portland, EVRAZ subsidiaries: Pueblo), EVRAZ Inc. NA GHG Steel Million tonnes 28.15 29.32 29.23 -0.10 -0.3 EVRAZ NTMK, EVRAZ Canada (including EVRAZ Segment CO2e KGOK, EVRAZ ZSMK, Camrose, EVRAZ Red Evrazruda, EVRAZ DMZ, Deer, EVRAZ Calgary, Scope 1 Million tonnes 25.47 26.58 26.58 0.00 0.0 EVRAZ, Vanady Tula, EVRAZ Regina) CO2e EVRAZ Caspian Steel, surface water million m3 166.67 148.05 145.72 -2.33 -1.6 Scope 2 Million tonnes 2.68 2.74 2.64 -0.10 -3.7 EVRAZ Palini e Bertoli, sources CO2e EVRAZ Nikom ground water million m3 4.69 4.74 4.83 0.09 1.9 GHG Steel NA Million tonnes 1.39 1.41 1.21 -0.20 -14.1 EVRAZ Stratcor, EVRAZ Segment CO2e Calgary, EVRAZ Camrose, seawater million m3 - - - - - EVRAZ Portland, EVRAZ Scope 1 Million tonnes 0.75 0.76 0.62 -0.13 -17.8 public network million m3 11.18 10.78 10.23 -0.55 -5.1 Pueblo, EVRAZ Red Deer, CO2e EVRAZ Regina, other sources million m3 0.64 1.09 1.44 0.35 31.9 Scope 2 Million tonnes 0.64 0.65 0.59 -0.06 -9.9 Iron Ore: fresh million m3 34.21 32.13 36.02 3.88 12.1 EVRAZ KGOK, Evrazruda CO2e water intake GHG Coal Million tonnes 9.25 12.61 13.19 0.58 4.6 Raspadskaya Coal for production Segment CO2e Company, Mezhegeyugol needs and Yuzhkuzbassugol Scope 1 Million tonnes 8.34 11.73 12.28 0.55 4.7 surface water million m3 30.03 26.86 30.80 3.94 14.7 CO2e sources Scope 2 Million tonnes 0.91 0.89 0.91 0.02 2.6 ground water million m3 0.58 0.54 0.55 0.01 2.0 CO2e seawater million m3 - - - - - GHG per t tCO2e per 2.01 1.97 1.97 0.00 0.02 public network million m3 3.39 4.72 4.65 -0.07 -1.5 of steel cast tonne of steel cast other sources million m3 0.21 0.01 0.01 0.00 -4.2 GHG per net kg CO2e / US$ 3.00 3.64 4.47 0.83 22.7 Mine and quarry 7. 6 6 8.84 9.91 1.07 12.2 revenue water usage GHG Steel kg CO2e / US$ 3.20 3.60 4.19 0.58 16.2 for production Segment needs GHG Steel NA kg CO2e / US$ 0.50 0.56 0.68 0.12 20.6 mine water million m3 1.88 1.88 1.64 -0.24 -12.7 Segment quarry water million m3 5.78 6.95 8.27 1.31 18.9 GHG Coal kg CO2e / US$ 4.00 6.24 8.85 2.61 41.8 Coal segment: million m3 9.10 8.52 7.9 6 -0.56 -6.6 Raspadskaya Coal Segment fresh water intake Company, Mezhegeyugol for production Water Management needs Total fresh million m3 226.49 205.32 206.20 0.88 0.4 surface water million m3 0.04 0.13 0.09 -0.04 -34.2 water intake sources for production needs ground water million m3 3.36 3.91 3.60 -0.31 -7.9 surface water million m3 196.74 175.03 176.60 1.57 0.9 seawater million m3 - - - - - sources public network million m3 0.76 0.69 0.66 -0.03 -4.2 ground water million m3 8.64 9.20 8.99 -0.21 -2.3 other sources million m3 4.93 3.79 3.61 -0.18 -4.8 seawater million m3 - - - - - Sustainability report 2020 100 101 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
Indicator1 Unit 2018 2019 2020 2020 vs. 2019 Definition Comments Indicator1 Unit 2018 2019 2020 2020 vs. 2019 Definition Comments ∆ % ∆ % Mine and quarry 9.70 12.39 14.38 1.99 16.1 Non-mining % 111.3 105.2 102.7 -2.4 -2.3 water usage waste recycling for production or re-use rate needs Mining waste kt 232,004.5 198,827.7 135,625.3 -63,202.4 -31.8 mine water million m3 9.13 11.82 13.81 1.99 16.9 Mining waste kt 62,049.0 75,467.9 38,634.1 -36,833.7 -48.8 quarry water million m3 0.57 0.57 0.57 0.00 -0.4 used Fresh water m3 / tonne 14.07 11.92 11.90 -0.02 -0.2 Mining waste % 26.7 38.0 28.5 -9.5 -25.0 withdrawal of steel cast recycling intensity or re-use rate Fresh water m3/ US$ 17.64 17.25 21.14 3.89 22.6 Environmental Management withdrawal thousand intensity revenue A documented and approved by regulator Water recycled % 92.8 93.3 93.3 0.00 0.0 liability to perform for use in own Exchange rate Environmental corrective actions operations US$ million 121 198.6 226.2 2 7.60 13.9 as of December 31 report commitments to be in compliance year Total water million m3 131.85 125.91 125.26 -0.66 -0.5 with environmental discharge requirements applicable into water bodies to a specific facility Steel segment million m3 75.27 68.90 68.58 -0.32 -0.5 EVRAZ NTMK, EVRAZ The amount ZSMK, EVRAZ DMZ Asset Retirement of Environmental (included in the figures Obligation - is a legal Liabilities is calculated for 2018, however, obligation associated using discounted was sold in 2018), EVRAZ Environmental with the retirement amounts of future cash Vanady Tula, EVRAZ Liabilities (Site of a tangible long-lived flows and disclosed US$ million 244 342 296 -46.00 -13.5 Caspian Steel, EVRAZ Restoration asset (i.e. remediation in the Financial Palini e Bertoli, EVRAZ Provisions) work such as, land Statements as Site Nikom, EVRAZ Stratcor, rehabilitation, removing restoration provision. EVRAZ Inc. NA (including underground fuel storage Exchange rate EVRAZ Portland, EVRAZ tanks, cleanup, etc.). as of December 31 report Pueblo), EVRAZ Inc. NA year Canada (including EVRAZ Environmental Camrose, EVRAZ Red Levies and Fines Deer, EVRAZ Calgary, US$ million 2.2 5.0 3.1 -1.90 -38.0 for Non- EVRAZ Regina) compliance Iron Ore million m3 12.03 12.86 12.47 -0.39 -3.0 EVRAZ KGOK, Evrazruda Cost of environmental US$ million 30.1 30.3 32.9 2.57 8.5 compliance Coal segment million m3 44.55 44.15 44.21 0.06 0.1 Raspadskaya Coal Investments Company, Mezhegeyugol to improve US$ million 29.8 28.8 56.9 28.15 97. 7 environmental Waste & By-product Management performance Non-mining kt 7,947. 8 8,445.4 8,651.4 206.02 2.4 Material waste & environmental cases 0 0 0 - - by-product incidents generation Public complaints cases 36 31 11 -20.00 -64.5 Metallurgical kt 6,401.7 6,829.6 6,406.9 -422.79 -6.2 Compliance by-product cases of non- with REACH 0 0 0 - - generation complience requirements General waste kt 1,546.1 1,615.7 2,244.5 628.81 38.9 non-hazardous kt 1,471.9 1,547.4 2,188.0 640.54 41.4 waste generation hazardous waste kt 74.2 68.3 56.6 -11.73 -17.2 generation Non-mining waste kt 8,846.8 8,881.2 8,886.1 4.9 0.1 & by-product recycled Non-mining waste kt 591.2 661.6 751.0 89.4 13.5 & by-product non-recycled Sustainability report 2020 102 103 Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain
APPENDIX 6 – INDEPENDENT PRACTITIONER’S ASSURANCE REPORT
Ernst & Young LLC ООО «Эрнст энд Янг» Sadovnicheskaya Nab., 77, bld. 1 Россия, 115035, Москва Moscow, 115035, Russia Садовническая наб., 77, стр. 1 Tel: +7 (495) 705 9700 Тел.: +7 (495) 705 9700 +7 (495) 755 9700 +7 (495) 755 9700 Fax: +7 (495) 755 9701 Факс: +7 (495) 755 9701 www.ey.com/ru ОКПО: 59002827 ОГРН: 1027739707203 ИНН: 7709383532
► Review of a selection of corporate and external me- ► Assessment of compliance of the Report and its We believe that the evidence obtained is sufficient and Independent practitioner’s assurance dia publications with respect to the Company sus- preparation process with Company’s sustainability appropriate to provide a basis for our limited assurance tainability policies, activities, events, and perfor- reporting principles, report conclusions. mance in the reporting period, ► Assessment of compliance of information and data Our independence and quality control To the Board of Directors of EVRAZ plc ► Analysis of material sustainability issues identified disclosures in the Report with the requirements of We apply International Standard on Quality Control 1 by the Company, the Core option of reporting ‘in accordance’ with the Subject matter (ISQC 1), and accordingly, we maintain a robust system GRI Standards. ► Identification of sustainability issues material for We have been engaged by EVRAZ plc to perform a limited of quality control, including policies and procedures doc- the Company based on the procedures described We also performed such other procedures as we consid- assurance engagement, as defined by International umenting compliance with relevant ethical and profes- above and analysis of their reflection in the Report, ered necessary in the circumstances. Standards on Assurance Engagements, (herein ‘the En- sional standards and requirements in law or regulation. gagement’), to report on EVRAZ plc (hereinafter ‘the We comply with the independence and other ethical re- ► Review of data samples regarding key human re- Conclusion Company’) Sustainability Report (hereinafter ‘the Re- sources, environmental protection, health and quirements of the IESBA Code of Ethics for Professional Based on the procedures performed and evidence ob- port’) as of 31 December 2020 or for 2020 (hereinafter safety indicators for the reporting period, to assess Accountants, which establishes the fundamental princi- tained, nothing has come to our attention that causes us ‘the reporting period’). whether these data have been collected, prepared, ples of integrity, objectivity, professional competence to believe that the Report is not represented fairly, in all collated and reported appropriately, Under this engagement, we did not perform any proce- and due care, confidentiality and professional behavior. material respects, according to the Criteria. dures with regard to the following: Summary of work performed ► Collection on a sample basis of evidence substanti- ating other qualitative and quantitative information ► Forward-looking statements on performance, The assurance engagement performed represents a lim- included in the Report at the headquarters level, events or planned activities of the Company; ited assurance engagement. The nature, timing and ex- ► Correspondence between the Report and the Task tent of procedures performed in a limited assurance en- Force on Climate related Financial Disclosures, and gagement is limited compared with that necessary in a the UN Global Compact principles. reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance en- Applicable criteria gagement is lower. In preparing the Report the Company applied Global Re- Although we considered the effectiveness of manage- E.V. Khramova porting Initiative Sustainability Reporting Standards ment’s internal controls when determining the nature Partner (hereinafter ‘GRI Standards’) in Core option and the sus- and extent of our procedures, our assurance engagement Ernst & Young LLC tainability reporting principles of the Company as set was not designed to provide assurance on internal con- forth in the appendix ‘About this Report’ of the Report trols. Our procedures did not include testing controls or 29 April 2021 (hereinafter ‘the Criteria’). performing procedures relating to checking aggregation The Company’s responsibilities or calculation of data within information technology sys- tems. The Company’s management is responsible for selecting the Criteria, and for presenting the Report in accordance A limited assurance engagement consists of making in- with the Criteria, in all material respects. This responsi- quiries, primarily of persons responsible for preparing bility includes establishing and maintaining internal con- the Report and related information, and applying analyt- trols, maintaining adequate records and making esti- ical and other appropriate procedures. mates that are relevant to the preparation of the Report, Our procedures included: such that it is free from material misstatement, whether due to fraud or error. ► Inquiries of the representatives of the Company management and specialists responsible for its sus- The Practitioner’s responsibilities tainability policies, activities, performance and rele- Our responsibility is to express a conclusion on the vant reporting, presentation of the Report based on the evidence we ► Analysis of key documents related to Company sus- have obtained. tainability policies, activities, performance and rele- We conducted our assurance engagement in accordance vant reporting, with International Standard for Assurance Engagements ► Obtaining understanding of the process used to pre- Details of the entity (revised) International Standard for Assurance Engage- pare the information on sustainability performance ments Other Than Audits or Reviews of Historical Finan- indicators of the Company, Name: EVRAZ plc cial Information (hereinafter ‘ISAE 3000’). ISAE 3000 re- Record made in the Registrar of Companies for England and Wales 13 October 2011, Registration number 7784342. quires that we plan and perform our engagement to ob- ► Analysis of the Company stakeholder engagement Address: United Kingdom, W1H 6DU, London, 2 Portman street. tain limited assurance about whether, in all material re- activities via reviewing register of communication spects, the Report is presented in accordance with the and results of stakeholder meetings conducted by Details of the independent practitioner Criteria, and to issue a report. The nature, timing, and the Company, Name: Ernst & Young LLC extent of the procedures selected depend on our judg- Record made in the State Register of Legal Entities on 5 December 2002, State Registration Number 1027739707203. ► Benchmarking of the Report against sustainability ment, including an assessment of the risk of material mis- Address: Russia 115035, Moscow, Sadovnicheskaya naberezhnaya, 77, building 1. reports of selected international and Russian peers Ernst & Young LLC is a member of Self-regulatory organization of auditors Association “Sodruzhestvo”. Ernst & Young LLC is included in the control statement, whether due to fraud or error. of the Company and lists of sector-specific sustain- copy of the register of auditors and audit organizations, main registration number 12006020327. ability issues raised by stakeholders,
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