Our approach to sustainable development
Sustainability management is integrated into the NLMK Group corporate governance system and is carried out at all Group companies, including international ones. Sustainability matters consistently feature high on the agenda of NLMK Group’s leadership. The Board of Directors, Board committees, СЕО (Chairman of the Management Board), and the Management Board determine strategic growth priorities and ensure overall sustainability management.
Vice Presidents of functional areas are responsible for identifying specific tasks and initiatives to manage the social, economic, and environmental aspects of the Group’s activities and monitor their implementation. Departments responsible for developing approaches and implementing measures in matters concerning sustainability report to these Vice Presidents. The Group’s functional departments and teams are directly responsible for executing the tasks assigned to them and for local management of sustainability issues at the Group’s companies.
Sustainable Development Policy
In 2019 NLMK’s Board of Directors approved the Company’s Sustainable Development Policy. The Policy defines the Group’s principles, goals and objectives in matters concerning sustainable development, as well as the mechanism for managing the relevant agenda at the level of the NLMK Board of Directors. In particular, the Board’s Strategic Planning Committee is responsible for determining the Company’s goals and strategy for minimizing its environmental footprint, including greenhouse gas emissions, and reviewing and approving the relevant investment programme. The Board’s Audit Committee monitors the integrity of the disclosure of sustainable development information.
The relevant functions are set out in regulations on NLMK Committees, which were approved at NLMK’s General Meeting of Shareholders (for more information, please visit our Corporate Governance section).
Leadership in sustainability and safety is one of the four main goals of NLMK Group’s Strategy 2022, and the changes that have been implemented will contribute to the successful achievement of this goal. The changes are in line with the best international practices and stakeholder requirements, and confirm NLMK Group’s commitment to the principles and objectives of the UN Global Compact, to which the company is a party.
Integrated management system
In 2020 NLMK Group approved its Integrated Management System Policy (IMS Policy). This Group-wide document lays out the Company’s intentions in the areas of quality (ISO 9001), environmental protection (ISO 14001), energy efficiency (ISO 50001), and occupational health and safety (ISO 45001). The Policy, approved as part of integrated management system development, complies with international standards and reflects best global practices of sustainable development. For more information, please follow the link.
IMS policy goals:
- To be a global leader in the quality of steel products and raw materials by continuously upgrading and expanding our product mix with the aim of increasing our customers’ competitiveness;
- To comply with industry best practices concerning the rational use of material and technical resources and the safety of our production processes for both human health and environment;
- To be a global leader in adopting best practices to make our operations more energy-efficient, and to reduce energy consumption and cost of production as far as is technologically and economically feasible;
- To ensure efficient production with zero accidents, incidents, and near misses through global excellence in occupational health and safety and continuous development and promotion of a safety culture among NLMK Group’s employees and contractors;
- To ensure our operations do no harm to the environment or the climate, and to respond to the changing environmental and climate conditions by balancing them with the social and economic needs.
Sustainability agenda management at the Board of Directors level
- Sustainable development risk assessment
- Air emissions
- Discharge and waste
- Use of resources
- Climate change
- Integration of sustainable development KPIs in the remuneration system
- Social and employment:
- Operational health and safety
- Training and development
- Social policy
- Local communities
- Performance monitoring and sustainability reporting
- Corporate governance:
- Corporate governance
- Business ethics