Climate change

The company’s management keeps focus on climate change issues, which are integrated in the corporate governance system. The Board of Directors, the Board’s committees, СЕО (Chairman of the Management Board), and the Management Board prioritize strategic development domains and provide overall guidance for sustainable development. The company’s climate change initiatives are linked with sustainable development and risk management.

NLMK Group’s business model itself has a number of advantages supporting successful transition to a less carbon-intensive production chain. First, a world-class resource base is available that allows for the production of pellets with a higher Fe content. Second, NLMK Group has access to natural gas and low-carbon nuclear power. Finally, the Group's lack of coal assets pushes for lower consumption of coal and its derivative, coke.

Moreover, NLMK Group products themselves (e.g., steel for wind power, energy-efficient electrical steels) enable a wide range of consumer industries to significantly reduce their climate impact and meet their decarbonization targets.

NLMK Group is focusing on the following actions:

• Assessment of direct and indirect greenhouse gas emissions (Scope 1, 2, 3) in line with the international GHG Protocol;

• Regular verification of greenhouse gas emission data;

• Evaluation of climate risks and opportunities, including analysis of potential mitigations;

• Climate change reporting under the CDP format (Carbon Disclosure Project);

• Regular GHG emission reporting in accordance with local statutory requirements in the countries of NLMK Group operation;

• Carbon Border Adjustment Mechanism reporting (СВАМ).

• Assessment of the carbon footprint of products;

• Development and monitoring of СО2 reduction projects;

• Consumer-side emission avoidance evaluation.

The company has set a measurable СО₂ emission reduction target.

NLMK Group will continue to reduce its greenhouse gas emissions while increasing steel output. By 2023, specific emissions across NLMK Group will total 1.87 tonnes of СО₂ per tonne of metal, which is consistent with the level of leading global steelmakers.

The group target is to reduce specific CO₂ emission from stationary sources (Scope₁ + Scope₂) within the current strategic cycle until 2023 without changing external emission factor, t CO₂ / t Fe

* Specific emissions without the impact of temporary factors related to lower production

* Удельная эмиссия без влияния временных факторов, связанных со снижением производства