Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Chelyabinsk Metallurgical Plant launched an extensive revamping of its blast-furnace #4 and converter #1, which minimized their impact on the environment.
• Mechel-Coke completed large-scale reconstruction of its by-product recovery plant, cutting emissions by 132 tonnes a year.
• Bratsk Ferroalloy Plant implemented environment protection measures to bring down emissions, reducing waste emissions by 50 tonnes a year.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Negative dynamics on the coal market of the metal industry.
• Reduction in coal production in the first half of 2019 due to overstocking of warehouses at the end of 2018.
• High level of fixed assets wear and tear, untimely supply of raw materials, materials, spare parts limitations of natural monopolies.

Mitigation Strategies

• Implemented a targeted program for updating and restoring mining transport equipment.
• Negotiations with major creditors regarding changes to the payback period.
• Detailed planning, forecasting of the production plan results and developed measures of responding to production related risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Ernst & Young Limited Liability Company (Ernst & Young LLC), Energy Consulting JSC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced air pollutant emissions by 15 thousand tons per year and water emissions reduced threefold in Chelyabinsk through agreements under the "Pure Air" federal project.
• Introduced the position of a deputy director for environmental management to accelerate environmental program implementation.

Social Achievements

• Retained staff during adverse economic conditions.
• Increased production volumes of coal by 10%, pig iron by 6%, and steel by 1% versus 2019.

Governance Achievements

• Successfully restructured debt with Bank GPB (JSC) and VTB Bank (PJSC), reducing financial debt by 146 billion rubles.
• Improved synergy between Group enterprises and actively applied information technologies in management to reduce costs.

Climate Goals & Targets

Environmental Challenges

• Significant slump in prices for coal products due to reduced steel production worldwide because of COVID-related restrictions.
• High level of fixed assets wear and tear, limitations of natural monopolies, untimely supply of raw materials, materials or spare parts.

Mitigation Strategies

• Successfully navigated adverse circumstances; no enterprise shutdowns, staff retention, fulfillment of financial liabilities.
• Detailed planning, forecasting of production plan results, and development of measures to respond to production-related risks.
• Debt restructuring to reduce costs and free financial resources for development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Ernst & Young Limited Liability Company

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Achievements

• Investments of 1.5 billion rubles to reduce water emissions by more than 3.5 times; planned investments exceeding 15.2 billion rubles by 2026 to reduce emissions by 14.7 thousand tons per year; over 2.4 billion rubles spent on environmental protection activities in 2021.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Audit Committee consisting of 3 independent directors; implemented a system of corporate governance aligned with best practices; self-assessment of Board of Directors activities performed.

Climate Goals & Targets

Environmental Challenges

• Strengthening environmental legislation leading to increased environmental impact fees and penalties; risks related to changes in interest rates, exchange rates, foreign currency rates, inflation and liquidity; risks related to high level of fixed assets wear and tear, limitations of natural monopolies, untimely supply of raw materials, materials or spare parts; potential for strikes due to trade union activity.

Mitigation Strategies

• Organizational and staff changes to improve and centralize environmental work; internal risk management tools and reserves; detailed production planning and risk response measures; activities to develop social partnership at Group Enterprises.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities