Nlmk · RUS:NLMK
Nlmk — ESG Presentation (July 2021)
32 slides from Nlmk's sustainability presentation, July 2021
Slide 1: Leadership in sustainability
1 Leadership in sustainability July 2021
Slide 2: Disclaimer
DISCLAIMER 2 This document is confidential and has been prepared by NLMK (the the industry in which the Company operates. By their nature, forwarding- “Company”) solely for use at the presentation of the Company and may looking statements involve risks and uncertainties because they relate to not be
Slide 3: Key highlights
3 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 4: Leadership in sustainability - key highlights
LEADERSHIP IN SUSTAINABILITY - KEY HIGHLIGHTS 4 NLMK’s key principles of sustainable development: NLMK IS THE UN GLOBAL HEALTH & SAFETY COMPACT’S PARTICIPANT – Creating long-term shareholder value – Caring about health, wellbeing and 0.5 ENVIRONMENT LTIFR target in 2023 vs. development of employees
Slide 5: Corporate governance
5 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 6: NLMK's board oversight of key sustainability aspects
NLMK’S BOARD OVERSIGHT OF KEY SUSTAINABILITY ASPECTS 6 Corporate governance The Board’s BOARD OF DIRECTORS Business ethics & activity covers countering corruption every ESG aspect NEW The Board is responsible for STRATEGIC HR, REMUNERATION DIGITAL compliance with PLANNING AUDIT COMMITTEE & SOCIAL PO
Slide 7: NLMK adheres to high corporate governance standards
NLMK ADHERES TO HIGH CORPORATE GOVERNANCE STANDARDS 7 The Group’s governance structure and THE MAJORITY OF THE THE MAJORITY OF THE COMMITTEES practices are aligned with G20/OECD BOARD IS INDEPENDENT ARE CHAIRED BY INDEPENDENT DIRECTORS Principles of Corporate Governance, Independent directors Indepe
Slide 8: Health & Safety
8 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 9: Safety is a top priority for the Group
SAFETY IS A TOP PRIORITY FOR THE GROUP 9 NLMK’s governing document: Integrated Management System Policy in Quality, LOST TIME INJURY FREQUENCY RATE (LTIFR*) Environmental Protection, Energy Efficiency, NLMK Group World** Occupational Health and Safety 1.17 1.25 OHSAS 18001:2007 certified; 1.01 1.12
Slide 10: Environment
10 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 11: Reducing carbon footprint – 2023 target
REDUCING CARBON FOOTPRINT – 2023 TARGET 11 Measurable target to reduce CO2 DIRECT & INDIRECT CO2 EMISSIONS DYNAMICS CO2 EMISSIONS AT NLMK LIPETSK emissions by 2023 t CO2 (scope 1 + scope 2) EU ETS methodology, t CO2 per t of steel (scope 1) NLMK blast furnaces are among the 2.04 2.02 2.00 1,98 1.98
Slide 12: Improving air quality
IMPROVING AIR QUALITY 12 NLMK has reduced air emissions AIR EMISSIONS INTENSITY intensity more than two times kg/t, NLMK Group since 2000 The Group operates more than 500 modern dust and gas purifying 20.0 20.2 19.8 facilities 19.5 18.9 18.9* 18.6* ISO 14001:2015 standard was ? 18 implemented at 14
Slide 13: Increasing energy efficiency
INCREASING ENERGY EFFICIENCY 13 ISO 50001:2011 certified ENERGY INTENSITY GCAL/t, NLMK Lipetsk (recertification under ISO 50001:2018 is underway) -0.9% Improved energy intensity was 5.6 5.5 5.6 5.5 5.5 5.80 achieved via equipment upgrade and 5.60 BAT 5.40 better processes 5.20 5.1 5.00 4.80 Higher s
Slide 14: Case study: integrated production chain - energy self-sufficiency
CASE STUDY: INTEGRATED PRODUCTION CHAIN - ENERGY SELF - SUFFICIENCY 14 ENERGY SELF-SUFFICIENCY TARGETS, NLMK LIPETSK Captive energy generation Secondary fuel gas recovery 110% 100% 90% 80% 70% 94% 100% 60% 79% 50% 64% 40% Captive energy seconda ry recovery 2020 2023 2020 2023 Target Target Strategy
Slide 15: NLMK's products contribute to the transition to a low-carbon economy
NLMK’S PRODUCTS CONTRIBUTE TO THE TRANSITION TO A LOW-CARBON ECONOMY 15 Calculating the impact of consumers using certain product categories Plate produced at DanSteel is used in on curbing CO2 emissions is a common wind energy facility - 33.5 practice and is widely used in the steel m t CO2 constru
Slide 16: Minimizing the use of water resources
MINIMIZING THE USE OF WATER RESOURCES 16 NLMK has substantially reduced water WATER CONSUMPTION & USE INTENSITY consumption in relative (per t of steel Water сonsumption, m m3 Specific consumptive water use, m3/t of steel produced) and absolute terms 5.5 5.3 5.1 100 6 The Group doesn’t operate in wa
Slide 17: Minimizing waste generation and reusing by-products
MINIMIZING WASTE GENERATION AND REUSING BY-PRODUCTS 17 The use of modern technologies for RECYCLING OF SECONDARY IRON-CONTAINING RAW MATERIALS recycling enables efficient use of %, NLMK Group, excl. mining waste secondary resources 101% 99% 99% 102% In 2020, slag processing complex was 100% 98% buil
Slide 18: Building a new M&M facility
18 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 19: Building a new metals and mining facility at Stoilensky
BUILDING A NEW METALS AND MINING FACILITY AT STOILENSKY 19 RUB PROJECT SCOPE: 250 Investment billion • Expanding the open-pit mine • Boosting beneficiation and pelletizing capacities 1, 300 New jobs • Building an HBI production facility 2027 Commissioning PRODUCTS: • Сoncentrate • Pellets with incre
Slide 20: Integrated production chain with maximum digitalization
INTEGRATED PRODUCTION CHAIN WITH MAXIMUM DIGITALIZATION 20 1 2 3 4 Increasing ore Building new ore Building new Setting up a facility extraction beneficiation capacities for for hot-briquetted and processing capacities producing pellets iron production with a high Fe content +24 m tonnes +10 m tonne
Slide 21: Low-carbon steelmaking process
LOW-CARBON STEELMAKING PROCESS 21 Average specific Average specific СО2 HBI is a cutting-edge raw material emissions of pollutants, emissions, t/t of steel for green steel production kg/t of steel The downward CO2 emission trend drives global demand for HBI High added value: replacing pig iron and s
Slide 22: Using best available technologies to reduce environmental footprint
USING BEST AVAILABLE TECHNOLOGIES TO REDUCE ENVIRONMENTAL FOOTPRINT 22 CONVEYOR MAXIMUM TRANSPORTATION UTIILIZATION FROM OPEN-PIT OF RECYCLED MINE RAW MATERIALS х2 reduction in emissions* CLOSED LOOP EFFECTIVE GAS WATER SYSTEM PURIFICATION 99% * compared to diesel locomotives
Slide 23: Tailings dam management
23 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 24: NLMK's tailings dam – safety is number one priority
NLMK'S TAILINGS DAM – SAFETY IS NUMBER ONE PRIORITY 24 DAM SAFETY is ensured by multi – level checks REGULAR EXTERNAL CHECKS NLMK’s tailings dam was put into operation in 1984 (weekly, monthly and annual checks by state bodies) Tailings dam development plan was independently audited Emergency prepar
Slide 25: Social
25 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 26: Developing our team
DEVELOPING OUR TEAM 26 NLMK Group employs NLMK GROUP’S EMPLOYEE TURNOVER RATE 51.9 thousand people 7.0% 6.9% 6.8% Employee turnover rate decreased in 2020 6.0% Regular staff satisfaction surveys are conducted ? 2017 2018 2019 2020 Feedback channels were developed and launched STAFF BREAKDOWN BY GEND
Slide 27: Developing local communities & supporting employees
DEVELOPING LOCAL COMMUNITIES & SUPPORTING EMPLOYEES 27 Tools for community INVESTMENTS IN SOCIAL PROGRAMMES IN 2020 engagement: - Assessment of existing social 2% Medicine and wellness 7% programmes 6% Material assistance and payments to - Direct engagement via dedicated channels 7% 36% employees no
Slide 28: Respecting human rights
RESPECTING HUMAN RIGHTS 28 Adhering to UN Global FUNDAMENTAL HUMAN RIGHTS PRINCIPLES AT NLMK Compact principles on human rights and labor Fundamental principles Areas of activity – Human Rights Policy and Prohibition of forced and NLMK only signs employment contracts with individuals that meet the m
Slide 29: Response to COVID-19
RESPONSE TO COVID-19 29 In March 2020, NLMK adopted a HEALTH AND SAFETY IS A …WITH SUPPORT PROVIDED …WHILE ENSURING comprehensive programme to PRIORITY…. TO EMPLOYEES AND LOCAL FLAWLESS OPERATIONS mitigate the impact of COVID-19, COMMUNITIES…. with measures covering over No material 50,000 employees
Slide 30: ESG Ratings
30 • Key highlights • Corporate governance • Health & Safety • Environment • Building a new M&M facility • Tailings dam management • Social • ESG Ratings
Slide 31: Recognition of NLMK's results by leading ESG rating agencies
RECOGNITION OF NLMK’S RESULTS BY THE LEADING ESG RATING AGENCIES 31 Continuous improvements Out of 100 across the board resulted in Out of 100 NLMK’s ESG ratings upgrades 83 90 77 100 by the leading rating agencies 45 90 36 80 53 50 in the area of sustainability 33 45 70 40 22 60 35 50 30 40 25 Sust
Slide 32: Company IR contacts
COMPANY IR CONTACTS 32 Dmitriy Kolomytsyn, CFA Director, Corporate Finance, IR Ekaterina Kokareva, CFA Head of IR Address 40, Bolshaya Ordynka Str., Bldg. 3 Moscow, 119017, Russia IR E-mail Address ir@nlmk.com Phone Number Office: +7 495 504 05 04 nlmkonair nlmk_group nlmk group