ANNUAL REPORT 2016

Social investment

Severstal is committed to developing the local communities and societies where it operates and improving the quality of life for our employees and their communities. This includes supported local infrastructure development, environmental protection, education, culture and sports and other investments to improve the lives of those in the communities where we work.

In 2016 the Group invested 2.6 billion roubles in social and charitable programmes spanning volunteering, child welfare and education programmes, investment in culture and sport and community outreach.

Severstal’s strong track record in the area of social investment has been recognised by Alexey Mordashov’s (Chairman) award of the Medal for Benefaction for his charitable and public activity. Furthermore, Natalia Poppel, head of the Corporate and Social responsibility (CSR) and brand department, was named a leader of the annual TOP-50 CSR managers in Russia.

Investing in local economies

The Group supports and develop innovative projects which help to build out small and medium business infrastructure as well as supporting social development in the regions where we have operations.

The Agency for Urban Development, our non-profit partnership established by Severstal and local authorities, successfully operates in Cherepovets. The purpose of the Agency is to promote the development of small and medium businesses while offering comprehensive support to entrepreneurs at all stages of development.

Key progress in 2016:

  • 60 new small and medium-sized businesses;
  • 200 new and 185 preserved jobs;
  • Over 6,000 consulting sessions on small and medium business development reaching over 9,000 people.

Investing in the future

In 2016 we helped to build 18 sport and playgrounds in Cherepovets. This project was given an award by the local authorities as the best social project.

One of our key successes in this field has been the Way Home programme supported by a successful trilateral partnership between the government authorities, businesses and local communities. Partners include the Russian Ministry of Economic Development, the Vologda Regional Government, the Foundation for Support of Children in Hardship, the National Charity Fund, the Lukoil Charity Fund, as well as social institutions, businesses and non-profit organisations from regions where the programme is available.

Way Home is a comprehensive child neglect, juvenile delinquency and social orphanhood prevention programme launched in 2006. It unites representatives from social groups interested in helping to address these issues. Alexey Mordashov, Severstal’s Chairman, launched the programme and continues to personally oversees its progress.

Over the last three years, we helped 2,314 children, reducing the risk of loss of parental support, and these children stayed with their families and more than 10,000 parents received parent training.

Supporting culture and the arts

Severstal has been a partner of Russia’s leading museums and theatres for many years and the Severstal brand has become aligned with many cultural organisations.

In 2016 we continued our partnership with the Bolshoi Theatre (Moscow), the Russian Museum (St. Petersburg), the Mariinsky Theatre (St. Petersburg), the State Tretyakov Gallery (Moscow), the Pushkin State Museum of Fine Arts (Moscow), the State Historical Museum (Moscow), the Cherepovets Museum Association (Cherepovets), the Kirillo-Belozersky Museum-Preserve (Kirillov), the Museum of Dionisy Frescoes (Ferapontovo, Kirillovsky District), the Vologda Open Air Museum of Architecture and Ethnography (Vologda, Semenkovo), the Radishchev Arts Museum (Saratov), the Balakovo Art Gallery (Balakovo), the Valaam Monastery, Sergey Andriyaka’s Watercolor School (Moscow) and others.

We continue supporting the Golden Mask, Russia’s largest theatre festival hosted in Moscow, Latvia and Cherepovets. In 2016 Severstal supported the inaugural visits of the Golden Mask to Petrozavodsk and Kostomuksha.

The Museums of the Russian North is a major culture grant programme of Severstal, focused on supporting the development of arts museums in the north of Russia. As a part of this programme, we organised in 2016 two interregional creative labs Museum and Travel Company: Technologies of Partnership. It reached more than 100 participants from our regions.

In 2016 we received 123 applications for travel grants from the museum communities, as a result, 60 more people decided to participate in professional museum events.

Supporting sports and leisure

Severstal promotes a healthy lifestyle among all our employees and their families by supporting the development of sport. We support sports events popular among our employees and local communities.

Severstal also invests in top-level sports and the Severstal Sports Club trains athletes and organises their participation in nationwide and international events.

We are also proud sponsors of the Dynamo Moscow women’s volleyball club. In Cherepovets, Severstal supports the Cherepovets professional hockey club, the Almaz junior team, and the youth hockey school that trains over 1,000 children.

In 2016 we continued the Hockey Without Borders project for people with disabilities. Through this project we organise transport and support for disabled sports fans so they can attend hockey matches. The project became an honoree of the Civic Initiative regional award.

Corporate volunteering

Severstal encourages its employees to engage in corporate charitable programmes, including prevention of child neglect and social orphanhood, mentoring, preservation of regional cultural heritage, environmental protection, and support for retirees, veterans and people with disabilities. The Group organised approximately 80 corporate volunteering events in 2016.

In 2016 Severstal for the first time took part in the international charity event Generous Tuesday. Our Company traditionally support large-scale Russian charity project Heartful Bazar which takes place on New Year’s Eve.

Community outreach

Severstal shares the principles of the Social Charter of the Russian Union of Industrialists and Entrepreneurs (RSPP) and the World Steel Association’s (Worldsteel) Sustainable Development Policy, reflecting the best practices of Russian and international businesses in productive collaboration with the communities.

When developing our operational strategies, Severstal works with local stakeholders to ensure that due consideration is given to the priorities of individual regions and local communities. This involves a complex system of stakeholder communications:

  1. External communications on our corporate initiatives;
  2. Feedback – including regular employee and consumer surveys, public opinion research and employee and consumer hotlines;
  3. Cooperation with business partners, regional authorities, trade unions, non-governmental organisations and professional associations;
  4. Expertise exchange and research of best practices.