For a Better Future - EVRAZ
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Our approach Our people Evolving health, safety, Supporting Responsible Appendices to sustainability and environment local communities supply chain For a Better Future Sustainability Report 2020
Sustainability report 2020 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
CONTENT
2 8 26 38 60 88
Appendix 2 –
Message from the CEO Our approach Our people Evolving health, safety, GHG emissions GRI Content Index
to sustainability and environment system and energy efficiency
27 Our approach
28 Personnel profile 39 Health, safety, and environmental 60 GHG emissions 94
5 9 Approach to sustainability 29 Staff recruitment and reduction governance 64 Boosting energy efficiency Appendix 3 –
management 31 Learning and development 40 External Initiatives 67 Outlook for 2021 UN Global Compact communication
About the Group 13 Ethics and business conduct 32 Motivation on progress
17 Sustainability risk management 34 Interaction with employees
5 Who we are 19 Stakeholder engagement 36 Human rights 41 68
6 Where we operate 20 Customer interaction 37 Outlook for 2021 and the midterm
Health and Safety Supporting local 96
7 What we produce 22 EVRAZ awards in 2020 Appendix 4 –
23 Memberships of associations management communities Task Force on Climate-related Financial
and institutions Disclosures
23 Tax liabilities 41 Approach 69 Management approach
25 Direct economic value generated 42 HS initiatives and projects in 2020 71 Local community support projects
and distributed 44 Developing the safety culture 79 Goals for 2021 and the midterm 97
46 Occupational injury prevention Appendix 5 –
47 Health protection Environmental performance
48 Transport safety 80
48 External OHS activities
49 Emergency prevention and response
Responsible supply chain 102
49 Goals for 2021 and the midterm management Appendix 6 –
Independent practitioner’s assurance report
81 The Group’s supply chain
50 82 Management approach
82 Promoting sustainability throughout
Environmental the supply chain
management 83 Goals for 2021 and the midterm
51 Management approach
52 Reducing air emissions 84
55 Balancing water supply
56 Waste stewardship
Appendix 1 –
58 Protecting biodiversity About this Report
59 Outlook for 2021 and the midterm
84 Approach to reporting
84 Report boundaries
84 Identification of material topics
87 Data preparation methodology
87 Assurance
87 Contact Information
EVRAZ EVRAZ
Annual Sustainability
Report 2020 Report 2020
Sustainability report 2020 2 3 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
GRI 102–14
In the reporting period the health employees began working remotely. to identify and eliminate safety related risks
MESSAGE
and safety of employees became The Group believes that these measures and to bolster the safety culture through
a particularly pertinent issue due to COVID- helped significantly in reducing the spread gamification.
19. The Group promptly implemented of the virus.
FROM THE CEO all necessary measures and successfully
adapted to new working conditions: foreign
business trips were cancelled; business
EVRAZ also endeavours to be one
of the leading companies that actively use
At Raspadskaya the Group introduced
the pilot version of a digital network
that uses artificial intelligence methods
trips in Russia were restricted; transport, the latest technologies and innovations to prevent incidents: the 24/7 network
canteens, and work spaces were sanitised in the area of health and safety. In 2020, ensures that employees use personal
daily; thermal imagers and pyrometers as part of the risk management system, protective equipment. It is also planned
were installed at checkpoints; all mass the Group launched a new mobile app, to roll out the system for vehicles,
events were postponed; and most office Hunt for Risk, which allows employees with a view to monitoring that safe driving
practices are being followed.
HUMAN CAPITAL MANAGEMENT
Our activity in the area of human resources Top-300 programme was held to train additional holiday days in case certain
management is aimed at ensuring that production managers. Due to the success events arise, and financial assistance
interaction with employees is based of the programme it was decided to expand in difficult life circumstances. In addition,
on respect of human rights. All employees it, consequently in 2020 the Top-1000 the Group organises cultural and sporting
have equal opportunities in terms programme was launched, covering events for employees and their families.
of professional and personal skills, career specialists who practice effective goal-
growth, a decent salary, and an attractive setting and feedback, delegation, and other EVRAZ strives to adhere to high standards
social package. aspects of management. in the area of employee engagement.
In order to be more productive in this
Alexander Frolov Education and training are important In 2020 EVRAZ completed work to enhance area, in 2020 the Group began planning its
Chief Executive Offcer aspects of staff management and key drivers the target remuneration system. Now employer brand development strategy. This
of employee development within the Group. the system is even more transparent initiative confirms the Group’s commitment
Each year EVRAZ implements new training and balanced (in terms of fixed and variable to being the best employer in the regions
programmes, which often become a regular parts) and reflects how well the employee, where we operate and to earn the trust
Dear Stakeholders, COVID-19 has encouraged us even more The year 2020 was a major challenge feature within the Group, with the most team, and department are performing. and support of our employees.
to make positive change for all groups for many companies and industries, effective initiatives being embraced. The social package includes voluntary
Despite the fact that 2020 was marked of people that influence and are impacted including mining and metals. We made For example, in the reporting year the third medical insurance, a pension scheme,
by various unprecedented and unexpected by our business. Although, EVRAZ has every effort to adapt to the changes
events, which in many ways changed always adopted a responsible approach brought about by the COVID-19
the world, EVRAZ maintained its to doing business, in 2020 we made even pandemic, and we are proud to report
commitment to creating long-term value greater efforts to attain UN Sustainable that we were able to respond rapidly to it. MANAGING ENVIRONMENTAL IMPACTS
for all stakeholders. In this unstable Development Goals, and we plan We tweaked business processes, fine-
environment EVRAZ once again confirmed to continue on this course. Also, in August tuned our performance, and maintained
its status as a responsible employer 2020 EVRAZ joined the UN Global high product quality. Despite the difficult The protection of the environment that production processes at all enterprises and quantitative indicators compared
and business partner, and also continued Compact, one of the world’s foremost situation across the world, a new working and combating climate change are gradually comply with applicable requirements. to previous periods. In 2020 the GHG
to implement projects and initiatives initiatives in the field of sustainable environment, and demand volatility, EVRAZ coming to the forefront of the strategies The system is embraced at all enterprises emission intensity level was 1.97 tCO2e/tcs
to protect the environment and develop development. generated EBITDA of US$2,212 million. of global companies, organisations, and is based on the plan-do-check-act (tonnes of carbon dioxide equivalent per
local communities. and governments. EVRAZ has also (PDCA) model. In 2020 EVRAZ made major tonne of crude steel) and the Group achieved
committed to these initiatives and adheres improvements in the area of managing its its goal of a GHG emission indicator of below
to a responsible approach in its operations. environment impacts. The Group reduced 2 tCO2e/tcs. The Group’s total energy
In 2020 the Group elaborated its its total atmospheric emissions from steel consumption fell 5.7% year-on-year.
OCCUPATIONAL HEALTH AND SAFETY Environmental strategy, which sets ambitious production by 3.7% compared to the 2019
climate targets for 2030 and is aligned level, and recycled 102.7% of non-mining I am particularly proud to mention that
with sustainable development principles. waste and by-products (target: 95%). Fresh EVRAZ’s environmental protection activity
Ensuring comfortable and safe working approaches their work with an understanding drop on the figure for 2019. The Group EVRAZ is also seeking to expand the scope water consumption in 2020 stood at 206.2 has been recognised at international level.
conditions and monitoring and safeguarding that safety comes first. achieved zero fatalities among contractors, of its commitments to include United million m3. The Group took second place in the Wall
employee health are our top priorities. however, I deeply regret to report that Nations Sustainable Development Goals, Street Journal ranking of the world’s 100
The Group seeks to ensure that a safety Our work in the area of occupational in 2020 there were five fatalities among the Paris Agreement, and the requirements In the reporting period EVRAZ published most sustainably managed companies;
culture exists at all stages of production safety is geared towards achieving zero our employees. The Group carried out of the Intergovernmental Panel on Climate its first Climate Change Report, based over 5,500 global public companies
and covers all employees and contractors. fatalities and reducing the lost time injury thorough investigations and took measures Change (IPCC). on recommendations from the Task Force were evaluated, across 26 categories,
For this purpose, EVRAZ regularly implements frequency rate (LTIFR). In 2020 the LTIFR to prevent such cases from reoccurring on Climate-Related Financial Disclosures and EVRAZ gained recognition for its
measures and educational programmes among the Group’s employees stood at 1.58 in the future. The Group has an Environmental (TCFD). The report contains detailed projects related to reducing emissions
aimed at making sure that everyone per 1 million hours, which was a 22.5% Management System (EMS) in place, which information on the Group’s approach and boosting energy efficiency.
manages environmental risks and monitors to climate change, climate risk management,
Sustainability report 2020 4 5 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
ABOUT THE GROUP
GRI 102-1 GRI 102–3
EVRAZ is a global steel, mining Corporate profile
and vanadium company and the leading
producer of infrastructure steel products.
THE GROUP NAME CEO
The Group has three business production
segments located in Russia, USA, Canada, EVRAZ plc Alexander Frolov
Kazakhstan and Czech Republic.
The Group supplies its products OFFICE IN THE UK BUSINESS SEGMENT
to more than 70 countries and stands
among the top global steel and coal England, 2 Portman street, London
Steel, mining and vanadium business
producers. EVRAZ is listed on the London W1H 6DU
Stock Exchange and is a constituent
of the FTSE 100 Index.
OTHER MAJOR OFFICES YEAR OF ESTABLISHMENT
Russia, Moscow str. Belovezhskaya, 4,
1992
Block B
71 S. Wacker Drive, Suite 1700,
Chicago, IL 60606
GRI 102–6
COMMUNITY RELATIONS
WHO WE ARE
Maintaining and fostering well-being The Group is especially proud that a challenging year we showed flexibility,
and social stability in the regions our employees are actively engaged in social improved our performance in many areas, Leading industry Financially Clean
where we operate are essential aspects initiatives implemented in the regions and demonstrated not only the stability
of the EVRAZ sustainability practice. of operations, acting as volunteers of the Group, but also an ability to achieve positions sustainable company environment
Each year the Group earmarks significant and helping vulnerable groups and people sustainable growth. I would like to thank
funds for organising large-scale cultural in challenging life circumstances. all our stakeholders for their support • a vertically integrated global steelmaker. • consolidated revenue amounted • water consumption amounted
and sporting events, implementing and contribution to the Group’s development. • one of the lowest-cost global steel to US$9,754 million. to 206.2 million m3.
educational projects, and improving In the reporting period EVRAZ held its Under all circumstances EVRAZ in turn producers. • consolidated EBITDA reached • total amount of air pollutant emissions
healthcare and infrastructure. traditional annual grant contest: City will strive to do even more for the overall • the market leader in construction steel US$2,212 million. from steel production decreased by 3.7%.
of Friends – City of Ideas, which allows prosperity of businesses, employees, products. • the Group recycled or reused 102.7%
Most EVRAZ initiatives are encompassed representatives from local communities and communities in the regions where • the leading global supplier of rails. of non-mining waste and byproducts.
within three main areas of social and other stakeholders to present projects we operate, thereby facilitating sustainable • a global leader in the production Sound • total energy consumption fell by 5.7%
investment: EVRAZ for Kids, EVRAZ to enhance urban spaces and protect development for a better future. of vanadium. year-on-year.
for Cities, and EVRAZ for Sports. the environment. This year 44 projects • the largest coking coal producer in Russia. employment
As part of its commitment to local received grants from the Group. • a geographically diversified business.
communities, during the reporting • 69,699 people have stable employment.
period the Group invested in setting up In 2020 EVRAZ placed a particular • EVRAZ wage ratio is up to three Safe and healthy
two R&D centres at the Siberian State emphasis on healthcare support, on account times higher than wages in the region
Industrial University in Novokuznetsk, of the pandemic. The Group provided
AMONG RAIL
SUPPLIERS
AMONG RAIL
SUPPLIERS of presence. and workspace
one of which – the Digital Competence financial support to purchase medical IN RUSSIA IN NORTH • 337 employees took part in corporate
Centre – allows students to acquire equipment and personal protective AMERICA management development programmes. • 100% of EVRAZ employees are covered
highly in-demand IT skills. EVRAZ equipment for hospitals in the regions where • Over 43,500 employees were covered by the Health and Safety management
also held workshops and educational we operate and opened new medical centres by the Target remuneration system, system.
programmes for children, and provided and COVID-19 diagnostic laboratories. WE ARE implemented in 2020. • the major metallurgical enterprises
No 1
financial support for orphanages, schools, of the Group are certified under ISO 45001
and family centres. Investing in holding 2020 negatively impacted many businesses, and OHSAS 18001.
sporting events and development activities people, and their families. It affirmed AMONG • LTIFR stood at 1.58, which was 22.5% lower
IN CONSTUCTION
for children and adults, as well as building the importance of being ready for unexpected THE RUSSIAN than in 2019.
STEEL MARKET
COKING COAL
sports facilities, are great ways to promote events and being able to react quickly Alexander Frolov IN RUSSIA • zero fatalities among contractors in 2020.
CEO PRODUCERS
a healthy lifestyle. to change. We are proud that in such • 42,136 employees underwent Risk
Management Project training.
Sustainability report 2020 6 7 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
GRI 102-4 GRI 102-7 GRI 102-7
WHERE WE OPERATE WHAT WE PRODUCE
EVRAZ is a leading producer in steel specific technical conditions, the purpose version of the official EVRAZ website).
EVRAZ OPERATES IN FIVE COUNTRIES: RUSSIA, USA, CANADA, markets and supplies its products of the product and how it will be used EVRAZ constantly works on improvement
to customers from 70 countries worldwide. further. of its products and services to strengthen
KAZAKHSTAN, CZECH REPUBLIC. Our broad product line is used in most our long-term relationships with partners
production industries, including The Group’s products meet the highest and customers and to create value for all
construction, rail infrastructure. Our output standards and are certified (a number stakeholders.
is tailored to the customer’s location, of certificates can be viewed at the English
Steel Coal Steel, North Number 5,948
segment segment America of employees1 EVRAZ KGOK GRI 102–2
segment
Main and ancillary products
13,359
178 EVRAZ NTMK Type of products Description
EVRAZ Red Deer Construction products EVRAZ produces steel that is used to construct residential homes, office buildings,
stadium, bridges and other infrastructure facilities.
64
243 EVRAZ Nikom
EVRAZ Calgary
91 15,578
Railway products Our product line is used in production of almost every element of rail infrastructure
(includes rails, parts for carriages, and railway wheels).
EVRAZ Camrose
Raspadskaya
Coal Company
1,072
EVRAZ Regina Tubular products EVRAZ is a leading supplier of large diameter line pipes for oil and natural gas
transportation, and is the only supplier of LD pipe that is fully made in Canada. We
are also a leading producer of small diameter line pipes used in construction, energy
exploration, and production.
Industrial products EVRAZ is a major player in the industrial market. Our products are used in most
industries, as following:
• mining.
• machine-building.
• hardware.
Vanadium products EVRAZ is the only full-cycle producer of vanadium in the world, and offers
a complete range of vanadium products. The Group produces around 20 high-
purity, performance-based vanadium chemicals, and also offers an extensive line
of vanadium alloys that can double the strength of mild steel.
22,531
EVRAZ ZSMK
Raw materials For main metallurgical production EVRAZ also extracts the raw materials such as iron
ore, coking coal, and limestone.
A significant share of The Group’s internal iron ore and coking coal consumption
is covered by own mining operations.
1,022 202
EVRAZ Pueblo EVRAZ Caspian Steel We greatly value our clients, and therefore We widely apply a range of modern and partners can find interesting EVRAZ
strive to improve not only our products, technologies in all our activities, Events application. We also developed
302 610 but also the process of interaction
with customers, ensuring an individual
including developing and using mobile
applications. EVRAZ employees can get
EVRAZ Wheels and EVRAZ VR applications
that provide virtual reality tours around
EVRAZ Portland
EVRAZ Vanady-Tula approach to each. access to information and HR services our production facilities.
by downloading EVRAZ app. Clients
1.
The map only presents the Group’s key enterprises. For this reason, the sum of the numbers below doesn’t match the total number of the Group’s employees at the end
of the year.
Sustainability report 2020 8 9 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
Our approach APPROACH TO SUSTAINABILITY
to sustainability MANAGEMENT
for a Better Future As EVRAZ recognises the significant role initiatives and by policymakers. We “We are proud to announce that
in 2020 EVRAZ has joined one
that sustainability principles and values play act in line with the top international
in any business’s growth and prosperity, standards, including OECD’s of the leading global sustainable
it works constantly to integrate them Guidelines for Multinational Enterprises development initiatives –
into its business processes. At EVRAZ, and the provisions of the United Nations the UN Global Compact.
2020 highlights Global Sustainable we consider sustainable development Universal Declaration of Human Rights. We are continuously working
to contribute to the implementation
to be an essential part of our success.
Development and promotion of the 10 Principles
$38 million 1.58
In 2020, EVRAZ joined the UN Global
in support of human rights,
Compact initiative.
US LTIFR Goals We are convinced that optimal efficiency
within our sustainability activities can
labour rights, the environment
per 1 million hours1 and anti-corruption.”
spent on social expenses in 2020 only be achieved by following the best For detailed information please see Appendix 3 –
practice enshrined in leading sustainability UN Global Compact communication on progress. →
Alexander Frolov
US $56.9 million 1.97 Chief Executive Offcer
invested in improving environmental tCO2e per tonne
performance
per tonne of steel cast GHG
intensity rate In order to ensure that sustainable development issues are considered across the Group’s business processes and operational stages,
69,699 employee
we have organised activities in this area into four main spheres:
headcount at the end of the year
PRIORITY SUSTAINABLE DEVELOPMENT AREAS
1. EMPLOYEE WELL-BEING ENVIRONMENTAL ECONOMIC STABILITY LOCAL COMMUNITY
Excluding fatalities and data on contractors.
Providing employees PROTECTION Ensuring stable economic DEVELOPMENT
with safe working Reducing adverse impacts growth and creating long- Contributing
conditions, wide learning from our operations term value for the Group. to the achievement
and development on the environment. See the sections Ethics of economic prosperity
opportunities, See the section Environmental and business conduct, p 13 →; and providing social support
and competitive management, p 50 → and Direct economic value in our regions of operation.
compensation packages. generated and distributed,
See the section Supporting local
p 25 →
See the sections Our People, communities, p 68 →
p 26, and Health and Safety
p 41 →
OUR CONTRIBUTION TO ATTAINING
SUSTAINABLE DEVELOPMENT GOALS (SDG)
GRI 102–12
EVRAZ fully supports the Sustainable our potential positive and negative In 2020, we conducted a questionnaire
Development Goals (SDG) adopted impacts on the environment, society, survey among our internal stakeholders
in 2015 by the UN General Assembly. and the business community, we created to determine the most pressing SDG
We are continually performing a list of 11 priority Sustainable Development to focus on in 2020. These goals
substantial work in order to contribute Goals, which we are constantly striving are marked “2020 focus” in the table below.
to attaining them. As a result of analysing to achieve.
Sustainability report 2020 10 11 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
EVRAZ inputs to meet Sustainable Development Goals
SDG Our inputs
SDG Our inputs Ensure inclusive and equitable quality education and promote lifelong learning See the sections Our People, p. 26;
opportunities for all: Supporting local communities, p. 68 →
Ensure healthy lives and promote well-being for all at all ages: See the sections Our People, p. 26; • Providing employees with quality professional education opportunities.
• High quality compensation packages for employees, which include comprehensive Health, Safety, and Environmental • Supporting education and improving conditions in local educational organisations.
medical insurance for our employees and their families. Governance, p. 39;
Supporting local communities, p. 68 →
• Initiatives to promote healthy lifestyles among the Group’s employees and local
communities. Particular attention is paid to the younger generation. Promote sustained, inclusive, and sustainable economic growth, full and productive See the sections Our people, p. 26;
2020 focus employment, and decent work for all: Health, Safety and Environmental
• Investing in building sports facilities in EVRAZ’s regions of operation. Governance, p. 39;
• Providing employment opportunities in the regions of operation.
Supporting local communities, p. 68;
Ensure the availability and sustainable management of water and sanitation for all: See the section Environmental Management, • Ensuring equal opportunities for all employees.
Responsible supply chain management,
• Cutting the Group’s freshwater consumption and increasing the quality and volume p. 50 → • Ensuring prevention of any modern forms of slavery. p. 80 →
of recycled water. • Meeting our tax obligations.
• Providing safe working conditions.
2020 focus Build resilient infrastructure, promote inclusive and sustainable industrialisation, See the section Supporting local
and foster innovation: communities, p. 68 →
Ensure access to affordable, reliable, sustainable, and modern energy for all: See the section Environmental Management, • Supporting and organising infrastructure development projects in the regions
• Lowering electricity use in each segment of the Group. p. 50 → of operation.
• Promoting initiatives aimed at generating electricity internally.
Make cities inclusive, safe, resilient, and sustainable: See the section Supporting local
2020 focus • Supporting the development of social infrastructure in the regions of operation. communities, p. 68 →
• Concluding agreements with local authorities to raise living standards.
Take urgent action to combat climate change and its impacts: See the section Environmental Management,
• Reducing the consumption of energy in the Group’s activities and boosting energy p. 50 →
efficiency in order to reduce CO2 emissions.
Ensure sustainable consumption and production patterns: See the section Environmental Management,
• Reducing the volume of waste generation and increasing the volume of waste p. 50→
2020 focus recycled.
Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable, and inclusive institutions
at all levels:
• Compliance with all applicable legislation.
• Respecting human rights.
• Fostering anti-corruption and bribery initiatives, preventing conflicts of interest.
• Combating modern forms of slavery.
Strengthen the means of implementation and revitalise the global partnership See the sections Environmental Management,
for sustainable developments: p. 50;
• Implementing and supporting sustainability initiatives promoted by Russian Responsible supply chain management,
p. 80 →
and international sector associations and institutions.
KEY DOCUMENTS
EVRAZ has elaborated a number the issue of personnel management: • Social Investments Guidelines.
of internal corporate documents that the Human Rights Policy and the Diversity • The Anti-Corruption Policy.
govern the Group’s activities in all and Inclusion Policy. • The Hotline Policy.
priority areas of sustainability. The list • The Policy on Main Procurement
of regulations, as well as the documents The main documents elaborated Principles.
themselves, are regularly revised for the Group and EvrazHolding • The Human Rights Policy.
and updated in order to ensure that they are the following: • The Diversity and Inclusion Policy.
still conform to the rapidly changing • The Code of Business Conduct. • Modern Slavery Statement.
external environment. In 2020 EVRAZ • EVRAZ Supplier Code of Conduct.
elaborated two new policies which address • The Health, Safety, and Environmental Policy.
Sustainability report 2020 12 13 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
ORGANISATIONAL STRUCTURE ETHICS AND BUSINESS
As the Group strives to ensure
the integration of sustainability
with determining the general course
of EVRAZ’s sustainable development.
corresponding to their functions,
and the managers of business segments
CONDUCT
principles into all its business processes, The CEO and Management Board apply the adopted initiatives in their
the sustainable development organisational monitor activities related to sustainability. segments in accordance with their business
structure covers all organisational levels Directorates, headed by vice-presidents, functions.
of the Group. The Board of Directors are responsible for setting respective APPROACH TO PROMOTING FAIR BUSINESS PRACTICES
and its committees are tasked goals and performing specific tasks
EVRAZ recognises that business The Group has elaborated a set of internal of ethical behaviour adopted by the Group.
GRI 102–18 transparency facilitates trust-based relations documents on business ethics, which In the previous reporting period, these
with all stakeholders and enhances must be complied with by all employees documents were duly updated in order
Sustainable development organisational structure the economic and social environments of the Group. These comprise: to reflect the changes that took place
in which the Group operate. The Group • The Code of Business Conduct. in the Group since their first appearance
Corporate level
has high standards for employees • The Anti-corruption Policy. in 2013. In 2020, EVRAZ continued to update
Audit Committee and contractors in terms of fair • The Anti-corruption Compliance System the documents and supplemented the Anti-
business conduct, and places emphasis Policy. corruption Policy and Code of Business
Nominations Committee on demonstrating a responsible approach • The Anti-corruption Training Policy. Conduct with policies on managing conflicts
to preventing, identifying, and responding • The Charitable donation and Sponsorship of interest and on sponsorship and charity
to cases of bribery, corruption and other Policy. activity. These procedures allow more
Health, Safety, and Environment THE BOARD types of malpractice. In the event of fraud, • The Gifts and Business Entertainment efficient management of corruption-related
Committee
EVRAZ makes every effort to eliminate Policy. risks.
the consequences, address the causes, • The Hotline Policy and whistleblowing
Remuneration Committee CEO Risk Management Group and prevent the reoccurrence of such cases procedures. All employees of the Group are obliged
in the future. • The Conflicts of Interest Policy. to adhere to the ethical principles set
MANAGEMENT • The Human Rights Policy. out in the Code of Business Conduct.
EVRAZ adheres strictly • The Diversity and Inclusion Policy. The Code refers to such principles
with the requirements of both Russian • Modern Slavery Statement. as equality of rights and opportunities,
and international legislation, including respect for people, rejection of all forms
Commerce Corporate Compliance the Russian Law “On Preventing The Anti-corruption Policy and Code of discrimination and slavery, zero tolerance
and Business Health, Safety, Strategy Corporate Legal with Business Corruption”, the UK Bribery Act, of Business Conduct are two key documents towards corruption, as well as the following
HR Vice
Development, CFO and Environment and Performance Communications Vice Procedures and Asset and the US Foreign Corrupt Practices Act. that set forth the principles and norms principles of conducting business.
President
Senior Vice Vice President Management, Vice President President Protection Vice
President Vice President President
GRI 102–16
The EVRAZ principles of conducting business
Procurement Anti-Corruption Compliance
IR Directorate PR Directorate GR Directorate
Directorate Function
OUR PRINCIPLES FOR CONDUCTING BUSINESS
Directorates of corresponding functional lines
Operational level RESPECT ENRICHMENT VALUE FOR OUR ACCOUNTABILITY ZEAL
FOR PEOPLE THROUGH CUSTOMERS FOR ACTIONS FOR CONTINUOUS
Management of segments and units in Group companies Safe working COLLABORATION By continually AND RESULTS IMPROVEMENT
conditions Working together improving our products We consistently aspire By developing
and the development as one team, and services, we will to achieve our goals, and implementing
Functional areas and units in Group companies of our people we achieve optimum strengthen long-term and are responsible new ideas, we facilitate
and local communities results. relationships with our for the results. the sustainable growth
are integral parts customers. of our company.
of the EVRAZ business.
For more information on the contents of these documents, see
our corporate webpage
https://www.evraz.com/en/sustainability/anti-corruption/ →
Sustainability report 2020 14 15 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
Approaches to combating corruption Compliance managers, who have been with Business Procedures and Asset RAISING AWARENESS OF ETHICAL BUSINESS CONDUCT
and adherence to ethical business conduct appointed at each significant subsidiary, Protection support.
are applicable for all Group entities actively monitor employees’ compliance A commitment to ethical behaviour For the past several years Group’s and tests on issues covered in the Anti-
and are implemented across all levels. with internal documents, examine In addition, compliance managers monitor underpins EVRAZ’s corporate culture, employees have attended an online corruption Policy. In addition, the Group
The Audit Committee (which reports reports of possible cases of corruption charity and hospitality expenses, conduct and the Group therefore focuses on raising anti-corruption course. Developed has elaborated a course on the Code
to the Board of Directors), together and other malpractice, conduct respective checks of potential and existing business awareness of ethical principles among by Thomson Reuters, it covers such of Business Conduct and is working
with compliance managers, play the key role investigations when necessary. The results partners, analyse and prevent potential employees and contractors. topical issues as business gifts, hospitality, on a conflicts of interest course. Together,
in anti-corruption activity. The committee of investigations (reports and related conflicts of interests, and are involved supplier communications, and charity. these courses will form a single programme
GRI 205–2
is responsible for monitoring the overall recommendations) are presented in monitoring tender procedures. The course consistently emphasises that, if that is mandatory for all managers
effectiveness of the Group’s anti-corruption to the business unit’s senior management, Mandatory requirements in the form an employee suspects that inappropriate of the Group.
system, investigations in this area, and issues the Group’s compliance manager, of corporate policies and documents behaviour has taken place, they should
related to corruption risks. and the Vice President, сompliance are published on EVRAZ’s internal contact compliance managers or call EVRAZ also requires compliance
and external websites, so that each the Hotline. In 2020, over 3,400 employees with the principles of ethical behaviour
employee and other stakeholders can throughout the Group completed online on the part of suppliers and counterparties.
refer to them at any time. The Group also anti-corruption training. To this end, each contract contains
ANTI-CORRUPTION RISK MANAGEMENT introduces new employees to the principles an appendix with a reference to the need
of ethical behaviour and ensures that In 2020, EVRAZ decided to improve to comply with EVRAZ anti-corruption
all employees are aware of and have its in-house capabilities and to move requirements and a link to the website
EVRAZ adopts a systematic approach most vulnerable to risks (procurements, The Group is proud to report that access to up-to-date information as well beyond externally provided trainings. where the Anti-corruption Policy
to identifying, assessing, and managing payments, sales, charity and sponsorship, the robustness of its anti-corruption as any changes in regulatory documents. The Group is now developing its own is published. In 2020, the Group worked
risks related to corruption and bribery. government relations, and others), practices and policies allowed it to quickly Learning Management System, which will out a course on EVRAZ anti-corruption
The main documents governing the Group’s a detailed analysis of the system of controls adapt to the uncertainties brought EVRAZ’s education initiatives in the field considerably enhance the effectiveness principles for suppliers and counterparties,
handling of these risks are the Anti- and procedures is performed. Compliance on by the pandemic and ensure of ethical behaviour make a significant of employee training management, which has already been taken by around
corruption Policy and Anti-corruption managers monitor existing risks the integrity of business ethics. In 2020, contribution to preventing corruption as the courses will become more 300 counterparty managers. In 2021,
Compliance System Policy. and proactively identify new and emerging there were no investigations initiated and bribery. Top management frequent and relevant to the specifics it is planned to further develop
ones. Information on risks is reported into suspected corruption involving state are committed to raising the employees’ of the Group’s operations. The course the Learning Management System, improve
At the end of each year, compliance to the Audit Committee. or public authorities. However, compliance awareness of strict ethical standards Anti-corruption Policy Requirements has the training system for counterparties
managers at all subsidiaries perform managers’ own leads regarding potential of business behaviour. They systemically already been elaborated by the Group on the Group’s principles in the sphere
GRI 205–1
a comprehensive analysis of corruption- fraudulent schemes between unscrupulous and regularly elaborate on its importance and is implemented. The course will of ethical business conduct.
related risks in respect to all assets The corruption risk assessment managers and suppliers/providers led and value in communication with specialists, be assigned to each employee every
and business processes of the Group. for 2020 was made in January 2021, to investigations. The employees involved managers, and administrative personnel. two years, it contains assignments
For business processes that are by nature due to the COVID-19 pandemic. were dismissed and vendors banned.
WHISTLEBLOWING HOTLINE
For more information on the analysis
and management of corruption-related risks, GRI 205–3
see the Anti-corruption and antibribery section EVRAZ encourages employees depending on the subject of the report.
of the Annual report. → and stakeholders to adhere to the principle The specialists then analyse the report As a result of the well-structured process
of transparency and to report cases and take specific measures to resolve in place for handling reports, year-
of misconduct or issues that they find the issue. If the report is not anonymous to-year there is growing confidence
concerning or suspicious, using a 24/7 and the person has provided contact in the whistleblowing hotlines among
whistleblowing hotline which guarantees details, the Group informs them the Groups’ employees and stakeholders.
anonymity. about the status of the report as well In 2020, 1,096 reports were submitted
as respective measures taken. via the Corporate Whistleblowing
The Group operates two separate hotline, and 49 via the ENA hotline. Out
whistleblowing hotlines: All complicated, controversial, or sensitive of all the reports received, 50 related
• The Corporate Whistleblowing hotline issues and handled by the Hotline to fraudulent intent. The respective
for all major plants, including the Siberia Committee (for the Corporate contracts with the employees concerned
Region (Steel and Coal segments), Whistleblowing hotline) and the Hotline were terminated, and necessary
the Urals Region (Steel segment), EVRAZ Team (for the ENA whistleblowing measures were taken to prevent such
Vanady Tula, and EVRAZ Metall Inprom. hotline), which include senior executives, cases from reoccurring in the future
• The EVRAZ North America (“ENA”) so the Group can be confident that all and to eliminate the consequences.
hotline. appropriate measures are taken to address
reports.
Incoming reports are registered in the IT
system and then allocated to relevant
specialists (e.g. HR, HSE, Security),
Sustainability report 2020 16 17 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
Working process of Corporate Whistleblowing hotline SUSTAINABILITY RISK
1. AN INDIVIDUAL MAKES A REPORT
MANAGEMENT
Communication through available channels: GRI 102–11
• email (vopros@evraz.com and hotline@evraz.com)
• the hotline phone number
• and internal corporate portal
APPROACH TO MANAGING SUSTAINABILITY RISKS
Risk management forms an essential There is a unified framework in place At EVRAZ, we apply the same approach
2. CONTACT CENTRE element of the Group’s activities in the Group that is used to identify, to managing financial and non-financial
and is aimed at attaining its strategic assess, and manage risks at both corporate risks. Hence the Group takes actions
Key role: collecting and registering reports objectives, including those related and operational level. Risk management to manage risks related to sustainable
Corporate Whistleblowing hotline: reports are received and registered by an in-house contact centre to sustainability. The risk management consists of the timely identification, development: environmental, social,
ENA Whistleblowing hotline: reports are received and registered by a third party, Navex Global
approach was elaborated in EVRAZ analysis, and assessment of risks and economic, as well as the other
to cover all the Group’s business processes and implementing appropriate measures risks that it is exposed to (strategic
3. RESPONSIBLE EXECUTIVE and is adopted in all its operations. when necessary. and financial).
For detailed information about our organisational
Key role: ensuring the transparency, swiftness, and independence of whistleblowing procedures The table below describes the Group’s sustainability related risks and gives an overview structure of sustainability risk management
Corporate Whistleblowing hotline: Vice President of Corporate Communications, Internal Audit Director of the Group’s measures to manage them. see EVRAZ sustainability report 2019, p. 26. →
ENA Whistleblowing hotline: General Counsel and Corporate Secretary, Internal Audit Director, Director of Corporate Security
The Group’s sustainability risks
4. SERVICES RESPONSIBLE FOR HANDLING REPORTS
Risk Description Risk management actions
Key role: investigating issues and preparing appropriate responses/solutions HSE: environment Steel and mining production carry an inherent risk • EVRAZ monitors its environmental risk matrix on a regular basis,
At the end of the investigation feedback is provided to the person that submitted the report (if the message is not anonymous) of environmental impact and incidents relating and develops and implements mitigation measures in response to these
to issues as diverse as water usage, quality of water risks. The top management also devotes greater attention to monthly
discharged, waste recycling, tailing management, monitoring of environmental risk trends and factors.
air emissions (including greenhouse gases), • The Group implements programmes to reduce air emissions and water use
Topics and percentages of popular issues raised via Corporate Whistleblowing hotline, 2019–2020, % and community satisfaction. at its plants, as well as to improve its waste management practices.
Consequently, EVRAZ faces risks including • EVRAZ has developed an environmental strategy and has updated its list
regulatory fines, penalties, adverse reputational of projects in accordance to achieve strategic goals regarding emissions
Labour relations 45 Labour relations 39
Public services 14 Public services 17 impact and, in the extreme, the withdrawal of plant and waste. The strategy is being implemented through dedicated
Hazardous conditions 2 Hazardous conditions 4 environmental licences, which would curtail programmes in each division.
Violation of Cardinal Safety Rules 1 Violation of Cardinal Safety Rules 4 operations indefinitely. • Most of the Group’s operations are certified under ISO 14001 and work
Employees and managers relations 1 Employees and managers relations 2 Globally, there is an increase in regulatory scrutiny is ongoing to bring the remaining plants in compliance with this
2020 Prosecution of employees for using hotline
Other
1
20 2019 Prosecution of employees for using hotline
Other
0.3
20
and pressure, as well as investor and customer international standard. EVRAZ is currently compliant with REACH
Labour compensation 6 Labour compensation 6 expectations. requirements.
Corruption and fraud 5 Corruption and fraud 3.7 • The Group has begun to develop a Climate Change Strategy, including
Information 2 Information 2 performing various scenario analyses and identifying appropriate risks.
Personal protective equipment 3 Personal protective equipment 2 • EVRAZ also participates in the development of GHG emissions regulation
(except quality) (except quality)
in Russia. In addition, the Group has achieved reductions in GHG
emissions as a positive side-effect of its energy efficiency projects.
HSE: health, Inherent HSE risks include the potential danger • To mitigate these risks, EVRAZ ensures that its management KPIs place
safety of fire, explosions and electrocution, as well as risks significant emphasis on safety performance and the standardisation
specific to individual mines, where elevated methane of critical safety programmes.
levels, rock falls and other accidents could lead • The Group is implementing an energy isolation programme, further
Topics and percentages of popular issues raised via the ENA whistleblowing hotline, 2019–2020, % to loss of personnel, outage or production delays, developing a programme of safety observations behaviour to drive
loss of material, equipment or product, or extensive a more proactive approach to preventing injuries and incidents,
Accounting, Auditing and Internal Financial 2 Discrimination or Harassment 33 damage compensation. as well as launching a series of health and safety initiatives related
Controls Other 21 In addition, the breach of any HSE laws, regulations to underground mining.
Conflict of Interest 8 Environmental Protection, Health 2 and standards may result in fines, penalties • Other measures include implementing maintenance and repair
Discrimination or Harassment 31 or Safety Law
and adverse reputational impacts and, in the extreme, modernisation programmes, launching a downtime management system,
Environmental Protection, 21 Inquiry 2
2020 Health or Safety Law 2019 Conflict of Interest 10 the withdrawal of mining operational licences, thereby
curtailing operations for an indefinite period.
further developing the occupational safety risk assessment methodology,
as well as analysing the effectiveness of corrective measures.
Inquiry 4 Safety 14
Other 14 Relation 6 There is also the risk of infection with COVID-19, • In addition, the Group conducts mass testing of personnel for COVID-
Safety 16 Gifts and Entertainment 4 which may be associated with the need for a mass 19 and has introduced reliable barriers to prevent carriers of the virus
Violence or Threat 4 Violence or Threat 8
quarantine of workers. from entering its facilities.
Business Prolonged outages or production delays, especially • The Group has defined and established disaster recovery procedures
interruption in coal mining, could have a material adverse effect that are subject to regular review. Business interruptions in mining mainly
on the Group’s operating performance, production, relate to production safety. Measures to mitigate these risks include
financial condition and future prospects. methane monitoring and degassing systems, timely mining equipment
In addition, any long-term business interruption may maintenance, as well as employee safety training.
result in a loss of customers and competitive • EVRAZ performs detailed incident cause analyses to develop
advantage, as well as damage to the Group’s and implement preventative actions. Records of minor interruptions
reputation. are reviewed to identify any more significant underlying issues.Sustainability report 2020 18 19 Our approach Our people Evolving health, safety, Supporting Responsible Appendices
to sustainability and environment local communities supply chain
Risk
Potential
Description
New laws, regulations or other requirements
Risk management actions
• EVRAZ and its executive teams are members of various national industry
STAKEHOLDER
regulatory actions
by governments,
including trade,
and regimes could limit the Group’s ability to obtain
financing on international markets, sell its products
and purchase equipment. EVRAZ may also
bodies. As a result, they contribute to the development of such bodies
and, when appropriate, participate in relevant discussions with political
and regulatory authorities. The Group seeks to monitor potential legislative
ENGAGEMENT
antimonopoly, be adversely affected by government sanctions changes before their introduction, at the point when new laws are being
antidumping against Russian businesses or otherwise reducing its drafted.
EVRAZ recognises the significance of fully We are constantly improving our channels stakeholders, therefore, we seek to use
regulation, ability to conduct business with counterparties. • EVRAZ has implemented and will further develop procedures to ensure
sanctions There is a risk of adverse geopolitical situations that sanctions requirements are complied with across its operations. While addressing concerns and expectations of all of communication so that they are easier the optimal and most convenient means
regimes, in the countries where the Group operates. the Group’s internal compliance controls address the associated risks, groups of its stakeholders, since this fosters to use and more effective. Despite of communication. For example, the Group
and other laws Other risks include the possibility that EVRAZ could the general uncertainty in the area increases management’s focus on this the building of respectful, transparent, having a number of different channels, actively participates in developing local
and regulations fail to adapt to new market conditions or could incur risk. and mutually beneficial relationships we promote the idea of having a unified communities and cooperates with local
losses connected with existing contracts in case • EVRAZ also continuously monitors changes in temporary legislation with them. information field and try to demonstrate authorities and other industrial enterprises
of additional sanctions implementation. related to the COVID-19 pandemic. our vision and values to a broad range to improve the ecological situation in our
During the process of elaborating of stakeholders. regions of operation, through both
Product Excessive supply on the global market and greater • EVRAZ works to expand its product portfolio and penetrate new communication approaches for different combined and individual efforts.
competition competition, mostly in the steel products market, geographic and product markets as well as to improve product quality. groups of stakeholders we strive to ensure We believe that open communication
primarily due to competitors’ activity and introduction • The Group constantly works on the development and improvement loyalty that we include all stakeholders, initiate and information transparency
of new facilities. Low demand for construction and on the implementation of customer focus programmes and initiatives. a two-way dialogue, and give stakeholders are a fundamental aspect of having
products and increasing competition in this segment. • EVRAZ strives to expand the share of value-added products. an opportunity to provide feedback. a constructive dialogue with our
Increasing competition in the rail product segment.
Excessive supply of slabs on the global market GRI 102–40 GRI 102–42 GRI 102–43 GRI 102–44
and intensified competition.
HR and employee Risks related to a lack of skills, a lack of succession • EVRAZ continuously monitors changes and compliance with applicable INTERNAL COMMUNICATION
EVRAZ is proud to be one of the best employers in its regions CHANNELS
risks planning, and reduced productivity due to labour labour laws and regulations.
EMPLOYEES of operation. The Group is constantly improving its personnel • Corporate TV and newspaper.
unrest or low job satisfaction levels. • The Group implements a human capital development programme,
management practices to ensure best in-class working conditions.
arranges regular meetings with trade union representatives and analyses • Internal portal and mobile app
employee engagement levels and seeks to find the ways to their for employees.
improvement. For more information about employee engagement see Our People section, • The EVRAZ Hotline.
• EVRAZ has introduced a grading system and remuneration management p. 34 → • Annual staff engagement surveys.
principles. In addition, the Group collaborates with universities • Interpersonal communication.
and colleges to enhance educational programmes. • Group-wide events.
Social Risks related to socio-economic instability • To mitigate these risks, the Group arranges and proactively supports
and community in the regions where the Group operates, social, infrastructure, sport, educational, and cultural programmes
EXTERNAL
risks deteriorations in relations with local communities in the regions of operation. EVRAZ focuses on acting in shareholders’ best interests
and authorities, and loss of the Group’s “social licence” • EVRAZ pays close attention to stakeholder engagement SHAREHOLDERS COMMUNICATION
and works to build an experienced management team, and also
to operate. and collaborations with cities and regional authorities. AND INVESTORS CHANNELS
implements corporate governance best practices.
• The media.
• Social media.
Climate change Risks related to climate change and extreme weather • EVRAZ implements energy efficiency projects that lead to lowering
• Our official website.
risks events that could lead to business disruptions, greenhouse gas emissions The Group supports global programmes EVRAZ generates value for its clients across the world • The EVRAZ Hotline.
resource shortages, and damage to the supply chain, to reduce greenhouse gas emissions. by prioritising value-added products, offering better shipping
CUSTOMERS • Annual reports.
equipment, and reputation. • EVRAZ participates in drawing up greenhouse gas emission regulations terms, and running a client-orientated business model.
in Russia. • Face-to-face
communications
Human rights Risks related to violations of human rights. • EVRAZ has adopted a Human Rights Policy and regularly informs with external stakeholders.
risks employees about the principles set forth in the Policy and in the Group’s SUPPLIERS EVRAZ values its relationships with business partners and ensures
Code of Business Conduct and runs whistleblowing hotlines. AND CONTRACTORS that its tenders are fully transparent.
• ERVAZ ensures its compliance with all applicable laws and regulations.
• The Group annually discloses a Modern Slavery Transparency Statement.
EVRAZ endeavours to promote prosperity in the regions
Quality Risks related to product quality. • The Group regularly monitors customer satisfaction levels and arranges of operations and works to create healthier and more stable local
LOCAL
meetings and feedback sessions with clients. communities by supporting social and economic development
COMMUNITIES
• Site visits to production assets are organized on a regular basis. programmes.
• EVRAZ implements production and quality improvement programmes.
Digital A failure to proactively use IT opportunities to increase • Digital Transformation is a part of the Group’s IT strategy.
effectiveness, the efficiency of business operations could result • EVRAZ continuously assesses and monitors information security risks, EVRAZ is one of Russia’s largest taxpayers and employers
GOVERNMENT and plays a valuable role for the country by providing
as well in a loss of competitive advantage and margins. and it implements mitigation measures upon completion of external AND REGULATORY
as effective, Information technology and information security risks assessments by an independent advisor. construction and railway products for infrastructure.
AUTHORITIES
efficient have the potential to cause prolonged production • The Group conducts regular continuity testing for the most critically
and continuous delays or shutdowns. important IT systems.
IT service At the same time, increased digital transformation • Successful mitigation measures include launching the IT Security EVRAZ’s proactive engagement with the media boosts the quality
and the convergence of IT and operational technology Operation Centre, conducting security awareness training for employees MEDIA
and transparency of information about the Group.
make companies more vulnerable. and effectively organising remote work for staff during the COVID-19
pandemic.
For more detailed information about the Group’s EVRAZ supports a number of industry organisations through
risks, their impacts, and risk management actions INDUSTRY
see the Principal Risks and Uncertainties section
joint initiatives and proactively participates in conferences
ORGANISATIONS and forums.
of the 2020 Annual report. →You can also read
