Energy Management System

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.

The Group’s commitments under the IMS Policy go beyond introduction of advanced energy efficient technologies and solutions that enable consumption reductions in natural and secondary energy resources – additionally, the Group undertakes to develop power generation capabilities that utilize metallurgical gases and other secondary energy resources, and to support the use of renewable energy sources where applicable and reasonable.

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 improving 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 purchased equipment and services are evaluated in terms of compliance with corporate energy efficiency requirements in accordance with the IMS Policy.

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.

Starting from 2022, the Company has integrated all management systems at its enterprises into a single Integrated Management System (IMS) and then integrated it fully into the business processes in 2023.

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.

In 2023, the Group’s main production sites in Russia successfully passed a re-certification audit of the Energy 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.