November 17, 2020
PAO Severstal, one of the world’s largest vertically integrated steel and
steel-related mining companies, has been recognized as the leader among Russian
mining companies in the 2020 International Corporate Human Rights Benchmark.
With a score of 11 out of 26, the Company has also outranked major
international metals companies such as ArcelorMittal, POSCO and
NipponSteel.
Key criteria of the Corporate Human Rights Benchmark include the integration
of human rights issues into corporate governance, the availability of legal
protection, the efficacy of responses to alleged human rights violations and
the transparency of information.
Severstal has also improved its performance in the SAM Corporate
Sustainability Assessment. The Company was upgraded to 15th place in the global
ESG rankings of steel-producing companies in the SAM Corporate Sustainability
Assessment (“SAM”). SAM (now a part of S&P Global – formerly RobecoSAM),
one of the most highly-regarded international ESG rating agencies, raised
Severstal’s rating by 7 points, from 41 to 48 (out of 100). SAM noted that the
ratings upgrade reflected the steady improvements Severstal has been making in
its sustainability practices and disclosure. The Company has consistently
improved its ranking. and the improvements have been marked by a continuing
upward trend in performance: in 2017, the Company’s score was 15, which rose to
36 in 2018, and 41 in 2019. The most significant improvement in 2020 was in the
Ecology section, which is a logical reflection of the Company’s extensive
environmental protection efforts. A key part of this was the implementation of
programs to reduce pollutant emissions and discharges into water. Severstal’s
progress in biodiversity conservation and the Company’s climate strategy, which
involves reducing the intensity of greenhouse gas emissions by 3% compared to
2020 levels by 2023, were also noted.
In 2020, Severstal also confirmed its participation in the FTSE4Good Index
Series and improved its score to 3.5 points out of a possible 5. The index is
based on the FTSE4Good ESG rating and is designed to channel investment into
companies that comply with the principles of sustainable development. All
companies included in the FTSE4Good Index Series meet the most stringent
environmental, social and governance criteria.
Alexander Shevelev, CEO of Severstal, commented:
“Severstal is committed to sustainable development and has made significant
efforts to go beyond simply complying with the minimum legal requirements, by
making valuable contributions to benefit the communities that we are a part of
long-term. Today, investors are increasingly integrating ESG factors into their
analysis, so we strive to be as transparent as possible on these issues.
Severstal began to disclose additional ESG information in its operating results
in 2018, and our stakeholders have welcomed this step up in our reporting
standards”.
Severstal’s high level of reporting was also recognized when the Company’s
2019 report was awarded first place in the Best Corporate Social Responsibility
and Sustainable Development Report category at the XXIII Moscow Exchange Annual
Report Competition.
In 2019, the Company’s investments in environmental projects amounted to
approximately 750 million rubles, and the Company has already invested 1.34
billion rubles in environmental measures in the first half of 2020
