Protecting our natural environment

2021 HIGHLIGHTS

Key events 2021

• HSE Policy was expanded in line with the environmental challenges
• Corporate rules on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) were updated
• The biodiversity roadmap was developed
• The water treatment facilities were upgraded at Alardinskaya mine
• Several significant initiatives within the Clean Air federal programme were enacted
• A dust suppression programme in coal storages at Raspadskaya washing plant was piloted

Material topics

Sustainable development goals (the Global Goals)

Environmental management

One of the Group’s strategic goals is to ensure sustainable business activities. Our environmental work includes, among other activities, protecting the biodiversity in our regions of operation, optimising our water use, mitigating waste-related risks, and reducing air emissions in line with our approach to environmental management as defined in the EVRAZ Business Strategy and HSE Policy (see the Health, Safety and Environmental Governance section). In 2021, we revised our current HSE Policy to expand on current issues and commitments that match our 2030 Environmental Strategy. The new policy introduces the following crucial aspects: favourable living conditions for future generations; contribution to global efforts to achieve the goals of the Paris Agreement by decarbonising our emissions; minimising the impact on the environment through energy and resource efficiency; increasing recycling and reuse share of waste, and biodiversity protection. All our enterprises use an environmental management system (EMS) based on the plan-do-check-act model. The EMS is a framework that facilitates the minimisation of environmental risks and coordination of the Group's environmental compliance.

GRI 307–1

Compliance with the applicable environmental requirements is a priority for EVRAZ. As part of our internal audits, we conduct risk assessments and evaluations of our HSE management systems. Our facilities are regularly audited by state and third-party agencies to ensure that we adhere to the environmental requirements.

No significant environmental incidents or claims were made against the Group's assets over the period covered by this report. The Group was fined and penalised for a total of US$3.1 million in 2021, which is lower than US$5.8 million in 2020.

The Group strives to ensure compliance with all relevant environmental requirements. In 2021, we completed updating our corporate rules on the registration, evaluation, authorisation and restriction of chemicals (REACH) to ensure that the Group's assets strictly comply with REACH for products supplied from or manufactured in the European Economic Area by the Group’s assets.

When developing new projects and operations, we perform special environmental and social impact assessments (ESIA) that evaluate possible indirect and direct effects of our activities on the local environment and communities. We are also developing plans to reduce these impacts and manage them through engagement with local stakeholders, including regional authorities, enterprises and host communities.

To maintain a high level of environmental awareness and competence among our employees, we provide training on waste management approaches, HSE practices and other relevant topics.

EVRAZ Fundamental Environmental Requirements

In 2021, EVRAZ invested US$71.2 million in respective projects to improve the Company’s environmental performance, and US$30.5 million — to support environmental compliance procedures. The Group is expected to conduct a variety of environmental protection initiatives between 2021 and 2026. The estimated costs associated with implementing these initiatives totalled to US$197.5 million by 31 December 2021, down from US$226.2 million as of 31 December 2020.