ANNUAL REPORT 2017

Our commitment to sustainable development

Our philosophy and values

At Severstal, we are resolutely committed to developing our operations in a sustainable way that delivers lasting benefits for the communities and environments around us. We also understand that the success of our business is absolutely reliant on our people.

Steel products are essential to the development of the modern world. However, we recognise our responsibility as an operator in a world where issues such as climate change, health and sustainability present both risks and opportunities for our industry.

Severstal’s Social Responsibility Policy is consistent with our mission, strategy and corporate values. We are committed to being a high-performance and socially responsible company and a leader in both economic and social value creation for all stakeholders. This means viewing sustainability as an opportunity to continuously improve our operations.

Leadership though innovation and Environmental, social and governance (ESG)

Severstal is committed to working in a cleaner environment and implementing ever more sustainable working practices. This is an area that the Board takes very seriously and we have delivered a significant transformation of our assets in recent years.

We are also constantly upgrading our facilities to reduce our environmental footprint. Safety will always be a top priority for Severstal. We aim to be an accident free company and are always reviewing our safety processes, ensuring that they are up to date and in line with best practiсe.

Our aim is to continually enhance our ESG reporting, setting the bar for other companies both domestically and globally. For example, we are currently developing our climate change policy, recognising that whilst we are a global low-cost producer and steel is a recyclable product that we need to ensure that we are well-positioned for a lower carbon future. We also recognise that it is our responsibility to manage our social and environmental impact at every stage of the production process in the regions where we operate. We have various initiatives in place supporting the local community through education, culture and sport.