APPENDIX 4 – TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURESFor more information about the Group’s governance around climate-related risks and opportunities, risk management processes, strategy and metrics used to assess climate-related risks and opportunities please see our official website.

№	RECOMMENDATIONS	COVERED IN THE REPORT
1	Governance Disclose the organisation’s governance around climate-related risks and opportunities	Section “Climate risk and GHG emission management”, section “Health, safety, and environment” Issues related to climate change are considered at regular meetings of the Board of Directors and Sustainability Committee of the Board of Directors. The Board of Directors oversees the process of managing climate-related risks and opportunities and approves the Group’s risk appetite. The Sustainability Management Committee (attended by the CEO, Vice Presidents, heads of business units) considers different climate-related issues, including the analysis of available decarbonisation technologies, asset-oriented measures to achieve emission quotas.
2	Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material	Section “Decarbonisation pathway” EVRAZ considers climate-related risks and opportunities, plans and designs measures to mitigate identified risks to make its business strategy and business model more resilient to the consequences of climate change. The decarbonisation pathway developing is started and will be integrated into operations and planning. Until 2030, decarbonisation initiatives will be mainly focused on energy efficiency, technological upgrade of equipment, and higher production productivity. EVRAZ analyzes long-term possibilities for decarbonisation.
3	Risk management Disclose how the organisation identifies, assesses, and manages climate-related risks	Section “Decarbonisation pathway”, section “Sustainability governance” Climate-related risk management is integrated into the corporate risk management system. The Group determines relevant climate-related risks for the short, medium, and long term in line with TCFD within the categories of transition and physical risks. The Risk Management Group plays a key role in identifying, assessing, and monitoring climate-related risks and mitigation measures within the Group.
4	Metrics and Targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material	Section “Climate risk and GHG emission management”, figures: EVRAZ’ GHG emissions, 2017-2021, million tCO₂e EVRAZ’ GHG emissions by segment in 2021, million tCO₂e Specific Scope 1 and 2 GHG emissions from steel production (the Steel and North America segments), tCO₂e/tcs EVRAZ’ Carbon intensity of GHG emissions per t Section “GHG emissions and energy efficiency” targets (by 2030 compared to 2019): to reduce specific Scope 1 and 2 GHG emissions from steelmaking operations by 20%, to reach 75%-utilisation of methane emitted while degassing coal mines.

№

RECOMMENDATIONS

COVERED IN THE REPORT

Governance

Disclose the organisation’s governance around climate-related risks and opportunities

Section “Climate risk and GHG emission management”, section “Health, safety, and environment”

Issues related to climate change are considered at regular meetings of the Board of Directors and Sustainability Committee of the Board of Directors. The Board of Directors oversees the process of managing climate-related risks and opportunities and approves the Group’s risk appetite. The Sustainability Management Committee (attended by the CEO, Vice Presidents, heads of business units) considers different climate-related issues, including the analysis of available decarbonisation technologies, asset-oriented measures to achieve emission quotas.

Strategy

Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material

Section “Decarbonisation pathway”

EVRAZ considers climate-related risks and opportunities, plans and designs measures to mitigate identified risks to make its business strategy and business model more resilient to the consequences of climate change. The decarbonisation pathway developing is started and will be integrated into operations and planning. Until 2030, decarbonisation initiatives will be mainly focused on energy efficiency, technological upgrade of equipment, and higher production productivity. EVRAZ analyzes long-term possibilities for decarbonisation.

Risk management

Disclose how the organisation identifies, assesses, and manages climate-related risks

Section “Decarbonisation pathway”, section “Sustainability governance”

Climate-related risk management is integrated into the corporate risk management system. The Group determines relevant climate-related risks for the short, medium, and long term in line with TCFD within the categories of transition and physical risks. The Risk Management Group plays a key role in identifying, assessing, and monitoring climate-related risks and mitigation measures within the Group.

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material

Section “Climate risk and GHG emission management”, figures:

EVRAZ’ GHG emissions, 2017-2021, million tCO₂e
EVRAZ’ GHG emissions by segment in 2021, million tCO₂e
Specific Scope 1 and 2 GHG emissions from steel production (the Steel and North America segments), tCO₂e/tcs
EVRAZ’ Carbon intensity of GHG emissions per t

Section “GHG emissions and energy efficiency” targets (by 2030 compared to 2019):

to reduce specific Scope 1 and 2 GHG emissions from steelmaking operations by 20%,
to reach 75%-utilisation of methane emitted while degassing coal mines.