Metalloinvest
Annual Report 2019

Approach to the Report

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Metalloinvest has improved its indicators in EcoVadis ESG-rating

This year, Metalloinvest was again assessed by EcoVadis and confirmed the compliance with Silver Level recognition for its ESG practices. As a result of Metalloinvest’s efforts towards sustainable development, its rating improved by 3 points yearon- year to 60 points in 2019, while the average industry rating was 43 points. The EcoVadis comprehensive assessment allows the Company to identify its strengths and growth areas of sustainable development. Based on the rating results, the Company develops plans to improve various aspects of its own activities and elaborates road maps, which guide all interested functional units to carry out a set of specific measures aimed at improving business processes and implementing sustainability best practices. In 2019, the roadmap was developed to address the following issues: industrial safety, environmental protection, labour practices, business ethics, sustainable supply chains and corporate governance.

SUSTAINABLE DEVELOPMENT

Metalloinvest’s contribution to sustainable is development is diversified and covers a wide range of aspects. The 2018 report outlined Metalloinvest’s priorities for sustainable development, which included the implementation of best practices for preventing and combating corruption, protecting human rights, improving the supply chain, reducing occupational injuries, developing the regions of presence, and tackling climate impact in its operations.

The principles of responsibility and sustainability are integrated into comprehensive strategic programmes underlying the Company’s Development Strategy.

The Company takes systemic action on reducing greenhouse gas emissions. In 2019, Metalloinvest developed a comprehensive corporate-wide Environmental Programme which would greatly improve the efficiency of environmental risk management and help resolving current environmental issues.

Ensuring high levels of occupational health and safety (OHS) remains a significant and priority issue for Metalloinvest. The Company’s overarching safety goal is zero incidents. To achieve this goal, we foster the culture of industrial safety, compliance with the best global standards and practices on labour protection, and strong internal discipline of each employee.

The Company makes significant efforts to ensure health and wellbeing of its employees. In the reporting year, we performed an assessment of employee involvement and satisfaction with the benefits package. Based on its results, also we implemented a set of measures to improve social and living conditions, employee meal system, leisure activities and other socially significant areas.

Development of regions of the Company’s operation is a key aspect of our activities within sustainable development. The Company is actively engaged in sustainable development of communities and liaises with stakeholders and local authorities. Metalloinvest’s enterprises create great economic value for the regions of operation, the welfare of which we are committed to promote. Metalloinvest is actively developing urban environment, education and healthcare systems.

ACHIEVING THE UN SUSTAINABLE DEVELOPMENT GOALS

Metalloinvest fully endorses the UN Sustainable Development Goals (SDGs), adopted in 2015, tackling the most important global environmental, economic and social issues. We believe that responsible business practices and the Company’s activities related to sustainable development make a significant contribution to the SDGs achievement.

The Company recognises the importance of addressing all the 17 Sustainable Development Goals contributing a fair share in their achievement. Given its nature of business, the Company is sharpening its focus on meeting 15 of the SDG goals, and 13 of them considered as material topics for the Company.

To complete this Report, we have conducted a survey of stakeholders on the importance of the UN Sustainable Development Goals for the Company. Based on the survey findings, we have compiled a list of top 5 goals with the largest Metalloinvest’s contribution according to stakeholders, namely:

  • SDG 3. Good health and well-being;
  • SDG 4. Quality education;
  • SDG 6. Clean water and sanitation;
  • SDG 8. Decent work and economic growth;
  • SDG 9. Industry, innovation and infrastructure.

PLANS FOR 2020

In 2020, Metalloinvest will push forward its sustainable development in key areas. The Company plans to implement a series of OHS initiatives in focus areas. Zero Injuries will remain our top priority and we will be tireless in our efforts to eliminate occupational injuries at the Company’s enterprises. We will continue to promote active communication with contractors and suppliers thereby ensuring secure compliance with occupational health and safety standards. Achieving the goal of zero accidents is an important issue for Metalloinvest, its suppliers and contractors.

Environmental agenda is another key priority. We keep track of the latest technologies and promising solutions that can help minimise the environmental impact, in particular, reduce the carbon footprint, and we are introducing them at the Company’s enterprises. At the end of the reporting year, Metalloinvest adopted new corporate-wide Environmental Programme, and we will move towards its implementation in 2020.

As we go forward with our plans for 2020, we will continue to promote sustainability principles across the entire supply chain and foster sustainable regional development.

In terms of supplier relations, we will go ahead with localisation of supply chains. We fully understand the important role of local suppliers in sustainable development of communities. The Company will continue to develop the towns where it operates, through the implementation of long-term urban development projects.

In 2020, we are planning to enhance employee engagement in sustainability practices – to develop and run a special training course in subsequent periods. This will help our employees understand the importance of sustainable development for the Company and globally.