Climate change
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: -
Assessment of direct and indirect greenhouse gas emissions (Scope 1, 2, 3) in line with the international GHG Protocol standard;
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Regular verification of greenhouse gas emission data;
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Assessment of climate-related risks and opportunities in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD);
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Participation in Carbon Disclosure Project (CDP);
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Assessing the carbon footprint of products;
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Investigation and monitoring of projects aimed at reducing СО2 emissions.
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Assessment of direct and indirect greenhouse gas emissions (Scope 1, 2, 3) in line with the international GHG Protocol standard;
-
Regular verification of greenhouse gas emission data;
-
Assessment of climate-related risks and opportunities in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD);
-
Participation in Carbon Disclosure Project (CDP);
-
Assessing the carbon footprint of products;
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Investigation and monitoring of projects aimed at reducing СО2 emissions.
The company has set a measurable СО₂ emission reduction target.
NLMK Group will continue to reduce its greenhouse gas emissions while increasing steel output. By 2023, specific emissions across NLMK Group will total 1.87 tonnes of СО₂ per tonne of metal, which is consistent with the level of leading global steelmakers.
NLMK Group has
set a measurable СО₂ emission reduction target
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
* Specific emissions without the impact of temporary factors related to lower production
* Удельная эмиссия без влияния временных факторов, связанных со снижением производства
Currently, NLMK’s GHG indicators are higher than the average EU level
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 most promising areas for NLMK to use CO2 as a product are industrial water softening, slag carbonization, and selling carbon dioxide in the market. NLMK is implementing research projects aimed at using hydrogen in its production process.