Climate change
NLMK Group takes a responsible attitude to climate change issues and takes substantial actions aimed at curbing greenhouse gas emissions, consistently reducing the carbon footprint of its products.
The company’s management keeps focus on climate change issues, which are integrated in the corporate governance system. The Board of Directors, the Board’s committees, СЕО (Chairman of the Management Board), and the Management Board prioritize strategic development domains and provide overall guidance for sustainable development. The company’s climate change initiatives are linked with sustainable development and risk management.
NLMK Group’s business model itself has a number of advantages supporting successful transition to a less carbon-intensive production chain. First, a world-class resource base is available that allows for the production of pellets with a higher Fe content. Second, NLMK Group has access to natural gas and low-carbon nuclear power. Finally, the Group's lack of coal assets pushes for lower consumption of coal and its derivative, coke.
Moreover, NLMK Group products themselves (e.g., steel for wind power, energy-efficient electrical steels) enable a wide range of consumer industries to significantly reduce their climate impact and meet their decarbonization targets.
NLMK Group is focusing on the following actions:
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Assessment of direct and indirect greenhouse gas emissions (Scope 1, 2, 3) in line with the international GHG Protocol;
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Regular verification of greenhouse gas emission data;
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Evaluation of climate risks and opportunities, including analysis of potential mitigations;
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Climate change reporting under the CDP format (Carbon Disclosure Project);
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Regular GHG emission reporting in accordance with local statutory requirements in the countries of NLMK Group operation;
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Carbon Border Adjustment Mechanism reporting (СВАМ).
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Assessment of the carbon footprint of products;
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Development and monitoring of СО2 reduction projects;
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Consumer-side emission avoidance evaluation.
2023 strategic cycle goal for specific emission of CO2 at 1.91 kg per tonne of steel has been achieved, which is on par with global leaders in steelmaking.
The group target is to reduce specific CO₂ emission from stationary sources (Scope₁ + Scope₂) within the current strategic cycle until 2023 without changing external emission factor, t CO₂ / t Fe
NLMK Group’s specific СО2 emission (Scope 1+2), t CO2 t of steel*
* Удельная эмиссия без влияния временных факторов, связанных со снижением производства
Key projects aimed at reducing greenhouse gas emissions
At the end of 2023, the closing year of the past strategic cycle, the total annual reduction of GHG emissions due to projects was 1,283 kt of CO2eq. under Scopes 1+2+3, including 817 kt under Scope 1 and 90 kt under Scope 2.
In 2024, NLMK developed the Group’s Climate Programme until 2030. The programme takes into account opportunities for advancing existing technology, increasing the share of pellets in the blast furnace charge, and exploring prospective technologies. According to the conservative scenario, the Company is set to reduce its emissions by 2030 to 2.27 t of CO2/t of steel (or 2.12 t of CO2/t of iron) in Scopes 1+2.
In 2025, NLMK invested in the following projects (all commissioned):
— Calculation of the “burn-through point” and integration into existing APC systems of sintering machines for sintering process control. Planned emissions reduction: 29,000 tonnes of CO2 per year
— Installation of new steam-driven K-3000 turbo compressor No.6 in NLMK’s Oxygen Shop. Planned emissions reduction: 23,000 tonnes of CO2 per year
— Recycling of wood waste into charcoal. Planned emissions reduction: 5,000 tonnes of CO2 per year
The Company continues to work on other projects, including a major ongoing undertaking to build a new power plant for secondary fuel gas recovery. This will be Russia’s first power plant that burns BOF gas for energy generation.
NLMK Group intends to continue reducing greenhouse gas emissions while simultaneously increasing steel output. The Company has set a long-term goal to reduce specific emissions (Scope 1+ 2) to 1.2 t CО2/t of steel by 2050.
NLMK Group's long-term decarbonization strategy has been developed taking into account the scenario of replacing the BF-BOF chain with low-carbon production technologies. The technological transition will take place in stages, depending on the schedule of major blast furnaces repairs and other process limitations.
When the industrialized hydrogen-based iron reduction technologies come along and sufficient amounts of low-carbon electricity become available, the new process chain will reduce the Group’s carbon intensity to 0.2 t of CO2/t of steel (a 90% reduction vs. the current level). The remaining emissions can be reduced to zero through CO2 capture projects or offset by absorption projects.
Thus, when the necessary external conditions allow it, NLMK Group aims to achieve carbon neutrality.
In 2025, the Company explored the key decision-making points for transitioning the Lipetsk site to low-carbon technologies, evaluating different options and selecting the optimal ones.
Even with the current energy consumption structure (based on natural gas), the HBI + EAF chain allows for a twofold reduction of СО2 emissions compared to the BF–BOF route.
NLMK Group has adopted long-term goals to reduce specific emissions (Scope 1+ 2) by 2050 to at least 1.2 tonnes of СО2 per tonne of steel (-40% from current level intensity), with a full transition to HBI+EAF supplied with the Group’s own iron ore, as well as procurement of natural gas and electricity at the current levels of carbon intensity.
When the industrialized hydrogen-based iron reduction technologies come along and sufficient amount of low-carbon electricity becomes available, the new process chain will reduce the Group’s carbon intensity to 0.2 tonnes of CO2 per tonne of steel (90% reduction vs. the current level). The remaining emissions can be reduced to net zero through СО2 capture projects or offset by absorption projects.
Thus, when the necessary external conditions allow it, NLMK Group aims to achieve carbon neutrality.
Currently, NLMK's greenhouse gas emissions are higher than the average levels in the EU.
CO₂ emission of NLMK according to EU ETS methodology (Scope 1), t CO₂ / t of pig iron
Deloitte, an international auditing company, has acknowledged the compliance of NLMK Group's calculated greenhouse gas emissions at the Lipetsk site with the methodology of the EU Emissions Trading System (EU ETS). Expert review of emissions was carried out at the production of coke, sinter, pig iron, lime and dolomite. The verification of NLMK emission values at the production of steel and iron ensures a reliable benchmarking with the EU emissions trading system. In 2021, NLMK’s greenhouse gas emission values were initially certified for EU ETS methodology compliance.
NLMK Group is exploring advanced decarbonization methods at its sites.The Company continues exploration of carbon capture, utilization and storage technologies, biofuels, and renewable power generation.
Climate cooperation
Interaction with trade associations
As for cooperation with trade associations, NLMK Group is a member of the Russian Steel Association and actively participates in the work of its Environmental protection committee, which examines various environmental aspects of steel production and environmental regulation issues, as well as the working group responsible for developing a strategy for decarbonization of steel in Russia. Committed to reducing CO2 emissions throughout the supply chain, the Association firmly believes that addressing climate change and promoting decarbonization can only be achieved at the global level through multilateral action.
In 2025, a system for benchmarking greenhouse gas emissions for ferrous metallurgy companies and enterprises that are members of the Russian Steel Association was being developed step by step with the involvement of a consultant. NLMK experts actively participated in developing methodological and organizational aspects. The system will enable a prompt and accurate benchmarking of the sites’ specific CO2 emission indicators, both for individual companies and for process chains (end-to-end emission per tonne of products).
The Company is working closely with suppliers to obtain information on the carbon footprint of purchased products and CBAM specific emission indicators. The calculations are based on specific CO2 emission data for rail cargo transportation within Russia. Specific emissions from natural gas production and transportation within Russia are assessed based on data from leading gas market players.
Disclosure in CDP
In 2025, the NLMK Group continued to disclose information as part of the CDP Climate Change survey, despite the fact that CDP currently does not evaluate companies headquartered in Russia and Belarus.
In 2021, NLMK Group published its first CDP Report, disclosing its climate action over 2020 and received a high rating of B-, which is above the industry average (C level).