APPENDIX 3 – UN GLOBAL COMPACT COMMUNICATION ON PROGRESS

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2: Make sure that they are not complicit in human rights abuses

EVRAZ has the Human Rights Policy that aligns with the United Nations Guiding Principles on Business and Human Rights.

The Group is monitored by trade unions, representatives from Russia’s Presidential Council for Civil Society and Human Rights and other public organisations to reduce the risk of legal violations. The Company also performs due diligence throughout the lifecycle of its operations and regularly identify actual and potential risks regarding human rights violations. The hotline operates anonymously 24/7.

• High employee awareness on human rights issues.
• A healthy working environment where employees are free of any kind of discrimination.
• No violations of human rights.
• Improved efficiency of human rights violations detection due to enhancement in the operation of EVRAZ Hotline.

Our people

Ethics and business conduct

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Principle 4: The elimination of all forms of forced and compulsory labour

Principle 5: The effective abolition of child labour

Principle 6: The elimination of discrimination in respect of employment and occupation

EVRAZ signs collective agreements with industry tariff agreements.

The Group strictly prohibits any forms of slavery (such as child labour and forced labour) and conducts risk assessments to determine which parts of its own business and supplier and subcontractors are at high risk of committing modern slavery acts. EVRAZ has a Diversity and Inclusion Policy that expresses no tolerance for any form of discrimination.

• More active and credible interaction of the Group with trade unions.
• No child labour or forced labour within the Company.
• Increased scrutiny of modern slavery issues in those areas of business and for those suppliers and subcontractors where there is a risk of committing modern slavery acts.
• Higher awareness of employees on the diversity and inclusion issues.
• Increased employee diversity.

Principle 7: Businesses should support a precautionary approach to environmental challenges

Principle 8: Undertake initiatives to promote greater environmental responsibility

Principle 9: Encourage the development and diffusion of environmentally friendly technologies

In 2021 the Group has clarified a new goal for the period up to 2030 (with 2019 as the baseline year), which covers air emissions aspects.

We highlighted that the indicator for air emissions only applies to social dust (dust that affects the local population during coal transportation in residential areas).

Specifically, the indicator does not apply to all dust, but only to dust that is considered socially significant.

Goals set by EVRAZ for the period up to 2030:

Water:

• Zero wastewater discharges from steel production.

Waste:

• Utilise 95% of waste from metal production and general waste.
• Recycle 50% of mining waste.

Air emissions:

• Reduce total atmospheric emissions from steel production by 33%.
• Reduce dust emissions from storing and transporting coal by 1.5 times.

GHG emissions:

• Reduce specific Scope 1 and 2 GHG emissions from EVRAZ’s Steel segments (the Steel and North America segments) by 20%.
• Utilise 75% of methane (CH4) emitted in the process of degassing carried out during coal mining.

• The Learning Management System will enhance the effectiveness of employee training management, as the courses will become more frequent and relevant to the specifics of the Group’s operations.