Sustainable development

NLMK’s sustainable development priorities:

• Increasing operational efficiency

• Energy efficiency

• Developing local communities

• Personnel development

• Occupational health and safety

• Minimizing environmental footprint

Increasing operational efficiency is an important part of Strategy 2017 and means, among other things, a reduction in the consumption of certain types of resources through the introduction of advanced technologies and advanced recycling.

Occupational health and safety. The Company operates production facilities which can be hazardous and is responsible for the welfare of its employees. The Company is striving to achieve global leadership in occupational health and safety among steel companies through the use of advanced OHS practices, efficient risk management and by motivating and actively involving its employees in OHS programmes.

Minimizing environmental footprint is one of the prerequisites for the success of Strategy 2017. Minimizing the negative impact NLMK Group assets have on the environment is the result of planned environmental and technological activities beyond the investment process; as well as part of NLMK Group’s investment activity.

Increasing energy efficiency is one of NLMK Group’s strategic priorities aimed at decreasing the amount of energy resources purchased and growing captive energy generation through utilizing by-product gases.

NLMK sees investment into the development of its employees as a prerequisite for the Сompany’s long-term competitiveness, dynamic development, an increased potential of its human capital; and, ultimately, the increased fundamental value of the Сompany as a whole. High-quality professional training provides the level of employee qualification necessary for solving professional challenges. It also increases employee loyalty, forms a favourable social and psychological climate in the workplace and has a direct impact on the development of NLMK’s corporate culture.

Improving the quality of life for people that live in the regions in which the Company operates is one of NLMK’s key social responsibility goals. The Company works with local communities; and the authorities at different levels; to strive to create new opportunities for using cutting-edge mechanisms for development of the regions where NLMK operates and to resolve the most pressing social issues.