Energy Management System

NLMK Group is a leading international manufacturer of high-quality steel products. It aspires towards maximum energy efficiency in its production operations. NLMK Lipetsk is the Group’s flagship site in driving ambitious goals for the Company’s Strategy.

The Power Management System in the Company has been put in place to strengthen its national and international reputation and image and guarantee achievement of objectives in energy efficiency based on mutual commitments of the management and employees.

In 2020, NLMK Group adopted an Integrated Management System Policy. This policy was developed and approved in order to reach the Group’s goals and objectives in sustainability. It allows the Company’s management to consolidate all current management system commitments under the umbrella of a singular document.

Objectives of the Integrated Management System Policy in terms of energy efficiency

Adhere to the best industry practices in rational use of material and technical resources, occupational and environmental health and safety in production,
Be a global leader in best practices to increase the energy efficiency of operations and to achieve the minimum technically and economically feasible level of specific energy intensity and cost of production.

Guiding principles of the Policy

NLMK Group ensures the reduction of resource intensity of its operations by implementing consistent actions to cut specific consumption of natural raw materials, water, fuel and energy, as well to reduce labour costs through increased productivity, resource recycling systems and adoption of BATs, regular monitoring of relevant indicators,
NLMK Group plans its economic activities based on the results of regular and objective risk analysis of quality, environment, energy efficiency, occupational health and safety,
NLMK Group plans and implements activities aimed at increasing the social and economic situation in the regions of operation and within their local communities, including through stewardship of the environment, efficient use of natural resources, and social responsibility,
NLMK Group ensures openness and accessibility of information related to the objectives and results of its activities in quality, occupational health and safety, energy efficiency, industrial and environmental safety, and seeks to engage in effective communication with external and internal stakeholders.

The Energy Management System has been at work in the Company successfully since 1999. In 2012, NLMK Lipetsk was audited for compliance with the international standard requirements to Energy Management Systems ISO 50001:2011 "Energy management systems – Requirements with guidance for use” (Rev. of 2011) and became the first steel maker in Russia to receive this certification.

NLMK’s Energy Management System determines and oversees compliance with the Energy Efficiency Requirements for equipment and engineering as part of the Company’s investment and operating activities. Together with the Technical Policy for Energy Complex Management of the Company (in effect since 2014), which determines the main organizational and technical areas in the reliability and efficiency of energy operations, the energy efficiency requirements include the best global and industry-specific practices in energy efficiency. The proposed technical solutions for equipment that is newly constructed or to be upgraded are audited for compliance with the energy efficiency requirements and the requirements of the Technical Policy for Energy.

NLMK’s Energy Management System is continuously operated and improved. Since 2018, NLMK Group’s Russian companies have started relying on a single “umbrella” certificate for each of the management systems. This allows for cost savings in auditing existing management systems.

In 2022, the Group completed the integration of all existing management systems at its sites into a single Integrated Management System (IMS). All core production sites have implemented integration projects on the enterprise level. NLMK Lipetsk has taken the lead in this undertaking.

Since 2023, all existing management systems of the enterprise have been integrated fully with NLMK Lipetsk’s business processes.

The Company puts a special emphasis on developing competencies and increasing staff engagement in improvement of energy efficiency in production. Group companies have introduced specialized remote courses for staff enabled by corporate IT resources. Employees are also informed about the energy performance of individual shops/sites/companies via the corporate portal.

NLMK’s energy management target-setting is fully integrated into the corporate system of objectives. Energy targets are delegated across the Company’s management levels to motivate employees.

Each NLMK employee has an opportunity to submit and register an idea/initiative on energy efficiency through the corporate portal under the “Bank of Ideas”, where ideas undergo further expert appraisal and efficiency evaluation. Funding for the implementation of such initiatives is earmarked within the framework of the corporate system of the operating efficiency improvement.

In April 2023, NLMK Lipetsk successfully completed a compliance audit of the Energy Management System which is part of its Integrated Management System. The certification body attested to the compliance of the sites’ with EnEMS to the international ISO 50001:2018 standard. The sites were awarded a new Certificate of Energy Management Compliance with ISO 50001:2018 as part of the “umbrella” certification system of the Russian NLMK Group companies.