Appendix 1: About the Report

GRI 102-46, 102-52, 102-54

Approach to reporting

The EVRAZ Sustainability Report (hereinafter referred to as the Sustainability Report and Report, EVRAZ or the Group) discloses information on the performance of the key sustainability and social responsibility management practices for 2021, as well as the Company’s medium- and long-term plans. The Sustainability Report is published in Russian and English.

GRI 102–50

The Sustainability Report provides information on EVRAZ’s performance from January 1 to December 31, 2021, on the economic, social and environmental impact in the regions where it operates, as well as the way it engages with all parties.

Since 2004, the Company has published integrated reports disclosing non-financial information on an annual basis, including an extended chapter on corporate social responsibility (CSR). Since 2018, EVRAZ has started issuing separate sustainability reports, with non-financial information disclosure according to the world’s leading practices. The Group’s latest reports, as well as additional information on sustainability performance, are available on the official EVRAZ website.

The main resources used to prepare the 2021 report were the following standards and guidelines:

  • Global Reporting Initiative (GRI) Sustainability Reporting Standards
  • Sustainability Accounting Standards Board (SASB)
  • Business Reporting on SDGs

As well as the following documents:

  • The UN Global Compact
  • Basic performance indicators in line with RSPP recommendations on governance practices and corporate non-financial reporting

Report boundaries

GRI 102–45

The information provided in this report discloses the sustainability performance of the following EVRAZ assets, unless otherwise stated in the body of the report.

Assets included in the Report boundaries
SEGMENT ENTERPRISE (REFERENCED IN THE REPORT)
Steel segment

EVRAZ Consolidated West-Siberian Metallurgical Plant (EVRAZ ZSMK) (including Evrazruda)

EVRAZ Nizhny Tagil Metallurgical Plant (EVRAZ NTMK)

EVRAZ Kachkanarsky Mining-and-Processing Integrated Works (EVRAZ KGOK)

EVRAZ Caspian Steel

EVRAZ Vanady Tula

EVRAZ Nikom

Coal segment Raspadskaya Coal Company
Steel, North America segment

EVRAZ Inc. NA (including, EVRAZ Portland, EVRAZ Pueblo)

EVRAZ Inc. NA Canada (including EVRAZ Camrose, EVRAZ Red Deer, EVRAZ Calgary, EVRAZ Regina)

Other Sales, services, and logistics companies

The process of identifying material topics

GRI 102–46

To identify material sustainability topics, their relevance to the Company was analysed from two perspectives, the materiality of economic, environmental and social impacts, and the extent to which these impacts influence the assessments and decisions of all stakeholders.

Approach to identification of material topics

Materiality matrix

GRI 102–47

As a result of the materiality analysis and stakeholder survey, 20 topics were selected for disclosure in the ESG Report. High and medium priority topics are the most fully disclosed in the Report. Low priority topics are included in the “Other relevant topics” sections and described at the top level.

Matrix of material topics of the Report
Material topics
CATEGORY № TOPIC PAGE NUMBER WITHIN THE GROUP OUTSIDE THE GROUP
Economic 1 Direct economic value 43 V V
2 Remuneration system 65 V V
3 Local community support 100 V V
4 Сorruption risk management 25 V V
5 Procurement impacts 104 V V
6 Taxes 41 V –
7 Risk management 34 V V
Environmental 8 Energy 53 V V
9 Water and Effluents 86 V V
10 Biodiversity 84 V V
11 Emissions 91 V V
12 Waste 89 V V
13 Environmental management 82 V –
14 Carbon and energy management 44 V V
Social 15 Employment 58 V V
16 Occupational health and safety 70 V V
17 Training and education 67 V –
18 Diversity and equal opportunity 63 V V
19 Local communities 100 V V
20 Interaction with employees 68 V –

Data preparation methodology

The data provided in this report has been compiled exclusively from official reporting forms provided annually to the state statistics authorities, as well as from management accounts, and in accordance with non-financial reporting disclosure methods and the recommendations of GRI, SASB and RSPP Standards.

In this Report, all data are presented in tables following the chapters on each aspect of sustainable development. Where detailed information on indicator calculation methods and changes are available, they are provided in the respective chapters of the Report.

Assurance

GRI 102-56

The Group engaged EY TSATR – Audit Services LLC (former Ernst & Young LLC): renamed in April 2022. to provide independent assurance of the Sustainability Report in order to ensure the quality, accuracy, and completeness of the reported data (see Independent Assurance Statement).

The information reported in the Sustainability Report has been independently assured by EY and the quality, accurateness and thoroughness has been certified.

Contact information

GRI 102-53

Contacts for investors and analysts

Contacts for non-financial reporting and sustainability

Irina Bakhturina
Director, Investor Relations

Kirill Vinokurov
Deputy Director, Investor Relations, Head of ESG

E-mail: sustainability@evraz.com