EVRAZ plc
Climate Impact & Sustainability Data (2018, 2021)
Reporting Period: 2018
Environmental Metrics
Total Carbon Emissions:38.79 Million tonnes CO2e
Scope 1 Emissions:34.56 Million tonnes CO2e
Scope 2 Emissions:4.23 Million tonnes CO2e
Total Energy Consumption:342.09 Million GJ
Water Consumption:226.49 Million m3
Waste Generated:7.95 Million tonnes
ESG Focus Areas
- Economic stability
- Employee well-being
- Environmental protection
- Local community development
Environmental Achievements
- Fresh water consumption fell by 29.1% compared to 2017
- 111.3% of non-mining waste and by-products were recycled, compared with 104.7% in 2017
- The Group’s greenhouse gas emissions declined by 6.9%
- 17.9 hectares of disturbed lands at the old ZSMK waste storage area were rehabilitated
Social Achievements
- Employee engagement level rose by 1 percentage point, to 53%
- US$27 million spent on social programmes and infrastructure maintenance in 2018
- Grants totalling US$230 thousand were issued to 51 projects within EVRAZ City of Friends – City of Ideas annual contest.
Governance Achievements
- The total number of reports made via whistleblowing lines has been falling over the years. In 2018 there were 28 collusion and fraud-related complaints submitted via the whistleblowing line (ENA is not included). Out of these complaints, six revealed fraudulent intent.
- The involved employees were terminated and all necessary measures to improve controls and mitigate related risks were taken.
Climate Goals & Targets
Long-term Goals:
- Maintain GHG intensity ratio below two tonnes of CO2 equivalent (tCO2e) per tonne of steel cast
Medium-term Goals:
- Develop a production mentorship programme
- Achieve a zero occupational injury rate
Short-term Goals:
- Improve the health management system
- Complete changes to the EVRAZ payment system
- Expand the Top-300 programme
Environmental Challenges
- 10 cases of fatalities in 2018 – six Group employees, and four contractors
- Excessive supply of steel products and slabs on the global market; increased market competition and low demand for construction products
- Socio-economic instability in regions where the Group operates, deteriorations in relations with local communities and authorities, and loss of the Group’s “social licence” to operate
- Climate change and extreme weather events that could lead to business disruptions, shortage of resources, damage to the supply chain, equipment, and reputation
Mitigation Strategies
- The Group conducted thorough investigations into all of these cases and elaborated measures to prevent similar cases from reoccurring in the future.
- Developing and improving loyalty and customer focus programmes and initiatives
- Taking part in social projects in regions of operation
- Implementing air emission reduction programmes at plants
- Implementing energy efficiency projects and, as a result, reducing greenhouse gas emissions
Supply Chain Management
Supplier Audits: 23 audit checks
Responsible Procurement
- Including clauses expounding the Group’s attitude towards human rights, including our policy of having zero tolerance towards child labour, all forms of slavery, and other issues, which are set forth in detail in the EVRAZ Code of Conduct
- Anti-corruption clauses are also included in contracts
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Increased market competition and low demand for construction products
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001, OHSAS 18001
Third-party Assurance: EY
UN Sustainable Development Goals
- Goal 3
- Goal 4
- Goal 6
- Goal 7
- Goal 8
- Goal 9
- Goal 12
- Goal 13
- Goal 15
The Group strives to make our own contribution to the attainment of global goals, by implementing fair and transparent business practices, reducing the impacts that our operational activity have on the environment and local communities, and maximising the positive values that we can bring to society.
Awards & Recognition
- Numerous awards listed on page 24
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:42.13 MtCO2e
Scope 1 Emissions:40.17 MtCO2e
Scope 2 Emissions:1.96 MtCO2e
Scope 3 Emissions:22.8 MtCO2e (2020)
Total Energy Consumption:350.8 million GJ
Water Consumption:196.2 million m³
Waste Generated:195.7 million tonnes
Carbon Intensity:1.90 tCO2e/tcs
ESG Focus Areas
- Decarbonisation pathway
- Environmental protection
- Employee well-being
- Economic stability
- Local community development
Environmental Achievements
- Reduced total atmospheric emissions from steel production by 2.9% compared to 2020
- Recycled 105% of non-mining waste and by-products
- Freshwater consumption reduced by 3.2% to 196.2 million m³
Social Achievements
- 80% of internal trainings were held online
- Implemented Target Remuneration System
- Launched EVRAZ Webshop, achieving 142% of online sales goals
Governance Achievements
- Established a Sustainability Management Committee
- Continued implementing the Target Remuneration System
- Developed Staff Attraction and Recruitment Standard
Climate Goals & Targets
Long-term Goals:
- Develop a decarbonisation roadmap for EVRAZ ZSMK and EVRAZ NTMK to be achieved by 2060
Medium-term Goals:
- Reduce specific GHG emissions from steelmaking operations (Scope 1, 2) by 20% by 2030 (vs 2019)
Short-term Goals:
- Reduce energy intensity of steel production by 20% by 2025 (vs 2018)
- Improve energy efficiency by 18% by 2025 (vs 2018)
Environmental Challenges
- Global economic factors, industry conditions, industry cyclicality
- Increased competition in the global market
- Cost effectiveness: cost position vs competitors
- Potential regulatory actions by governments
- Functional currency devaluation
- HSE: Environmental
- HSE: Health, safety
- Business interruption
- Digital effectiveness and effective, efficient and uninterrupted IT service
- Capital projects and expenditures
- Decarbonisation
Mitigation Strategies
- Exploring new market opportunities, focusing on expanding the share of value-added products
- Improving the balance sheet/ gearing
- Improving product portfolio and quality, entering new regions and product segments
- Implementing customer focus programmes and initiatives
- Implementing cost reduction projects to increase asset competitiveness
- Control of Russian steel distribution network, development of high value-added products
- Implementing EVRAZ Business System transformation projects
- Contributing to the development of national and international industry associations
- Monitoring potential legislative changes
- Enhancing its policy and procedures to ensure full compliance with the sanctions
- Proper disclosure and monitoring
- Implementing special projects and programmes to decrease GHG emissions, water usage, and waste
- Developing an environmental strategy until 2030
- Implementing safety initiatives, behaviour-based safety audits
- Maintaining and regularly reviewing disaster recovery procedures
- Implementing methane monitoring and degassing systems, regular maintenance of all mining equipment
- Implementing digital transformation projects
- Reviewing all proposed capital projects on a risk return basis
- Setting an internal carbon price, GHG emissions reduction, Scope 1, 2, 3 emissions monitoring
Supply Chain Management
Responsible Procurement
- EVRAZ Supplier Code of Conduct
- Policy on the Basic Principles of Procurement Activities
- ESG certification of suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Weather changes and natural disasters
Transition Risks
- Regulatory risks
- Reputational risks
- Technology risks
- Market risks
Opportunities
- Changes in energy sources
- Improving resilience
- Identifying opportunities in new markets and new products
- Improving resource efficiency
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN Global Compact
Certifications: ISO 14001, ISO 45001, OHSAS 18001
Third-party Assurance: EY
UN Sustainable Development Goals
- SDG 3
- SDG 6
- SDG 7
- SDG 8
- SDG 9
- SDG 11
- SDG 12
- SDG 13
- SDG 17
See page 21 for details
Sustainable Products & Innovation
- Steel with reduced carbon footprint
Awards & Recognition
- Forbes best employers list (Gold)
- InterComm 2021 Corporate Communications Award
- 100+ Awards
- Media Leader 2021