Environment

Our approach

EVRAZ prioritises the mitigation of possible environmental impacts from its steel and mining operations by introducing best management practices and adopting advanced technology. This helps the Group to prevent or control any undesired environmental consequences while consuming less energy and natural resources.

These operations are subject to strict environmental legislation requiring that EVRAZ complies with the terms of special environmental permits and licences, which generally entails certain environmental commitments, recruiting qualified personnel, maintaining necessary equipment and environmental monitoring systems, and periodically submitting information to environmental regulators. Failing to comply with any of these requirements could potentially lead to the suspension, amendment, termination or non-renewal of the environmental permits and licences. The Group could also incur significant costs related to eliminating or remedying any such violations.

Understanding that its production processes entail certain environmental risks and liabilities, EVRAZ is focused on preventing or minimising of any potential adverse environmental consequences from its operations. The Group’s corporate management system includes environmental procedures based on the plan-do-check-act (PDCA) model. It has been developed to promote EVRAZ health, safety and environment (HSE) policy principles and support its environmental strategy implementation, which includes environmental risk assessment, planning, legal compliance management, reporting and other processes.

For all new operations and projects, the Group performs environmental and social impact assessments (ESIAs) that engage with local and regional governments, businesses and community members in the affected area. EVRAZ uses ESIAs to assess how the new operations might potentially impact the local community and surrounding environment, both directly and indirectly. As part of the ESIA process, the Group establishes mitigation plans to minimise and manage any potential impact and engages with local communities throughout the project’s life to discuss any decisions that may be made.

EVRAZ strictly complies with the registration, evaluation, authorisation and restriction of chemicals (REACH) regulations concerning various substances supplied to or manufactured in the EU (European Economic Area) by the Group’s assets. EVRAZ supports the European Community’s health and environmental goals as established in the Regulation (EC) No. 1907/2006 of the European Parliament and of the Council, which governs the REACH requirements.

Another aspect of the Group’s environmental programme is training courses and seminars to encourage the exchange of experience by its specialists in the field.

EVRAZ also employs environmental audits (due diligence) to perform environmental liability and risk assessments of existing sites and assets being acquired.

Throughout its operations, the Group has introduced an environmental management system that it has developed based on the corporate approach and prioritises international certification, which, while not a legal requirement, has led to seven of the Group’s sites obtaining ISO 14001 certification, including core operations like EVRAZ NTMK and EVRAZ ZSMK.

Environmental strategy

The Group’s environmental strategy aims to minimise any negative impacts caused by its operations, as well as to make efficient use of natural resources and find optimal industrial waste management solutions. Environmental compliance is an overriding long-term priority.

EVRAZ has adopted new, five-year environmental targets (covering 2018–22) aimed at:

  • Decreasing fresh water consumption by 10%
  • Recycling 95% of annual non-mining waste
  • Maintaining the greenhouse gas intensity ratio below 2 tonnes of carbon dioxide (CO2) equivalent (tCO2e) per tonne of steel cast

The Group has committed to implement various environmental protection programmes over 2018–24. As of 31 December 2018, the estimated cost to implement these programmes totalled US$121 million.

In 2018, EVRAZ spent US$30.1 million on measures to ensure environmental compliance and US$29.8 million on projects to improve its environmental performance. Non-compliance-related environmental levies and penalties were US$2.2 million.

The Group’s assets had no significant environmental incidents or material environmental claims during the reporting period.

Biodiversity

EVRAZ recognises its responsibility to prevent and minimise its potential impact on the environment and biodiversity at all stages of the mining and steelmaking process, including when performing geological surveys, designing facilities, conducting operations and restoring sites that are no longer used.

The Group’s long-term goal is to foster a culture among its employees of care and concern for the environment and biodiversity of the areas in which it operates, as well as in how they implement its projects and create a positive dialogue with the local community.

The Group’s primary biodiversity efforts include:

  • Restoring damaged lands and landscaping
  • Restoring of water biodiversity
  • Implementing social and environmental initiatives

EVRAZ implements long-term projects aimed at compensating for its environmental impact.

  • Since 2011, the Abagursky branch of EVRAZ ZSMK has been working on the reclamation of its old tailings storage No. 2. In 2018, the site completed the dehydration and land planning stages of the project. The biological reclamation will begin in 2019.
  • Since 2015, the Raspadskaya mine has been implementing a long-term project to recover land damaged during open-pit mining (138 hectares).
  • In 2018, a project for landscaping damaged lands of the old waste storage section at EVRAZ ZSMK was completed. Overall, 17.9 hectares of land were restored and 2,400 pine seedlings were planted.
  • Work to landscape industrial sites and sanitary protection zones at facilities continued in 2018.

As part of EVRAZ environmental initiatives, trees are planted in parks, public squares, town/city streets and in the territory around kindergartens. Young trees brought from mine allotments where the forest is subject to felling are often used for planting as part of the “Second Life for Trees” initiative.

To restore aquatic biodiversity, the Group releases juvenile fish into the rivers of Kemerovo region and Sverdlovsk region.

EVRAZ social and environmental initiatives include:

  • “Environmental Saturday” voluntary work days – cleaning parks, planting trees and putting up birdhouses
  • “Second Life for Trees” initiative – replanting young trees from mining allotments where the forest is subject to logging
  • “Big Green Games” – environmental competitions among local companies in which teams choose their own areas to clean up
  • “Clean Games” environmental quest – teamwork in collecting and sorting garbage in parks
  • “Clean Shore” initiative – helping to clear debris from the protected watersheds of the Bolshoy Unzas, Kondoma and Maly Bachat rivers
  • “Live Spring” initiative – improving natural springs

Air emissions

Key air emissionsAir emissions calculation perimeter differs from the calculation perimeter of GHG emissions., kt

Reducing air emissions is one of EVRAZ’ overriding environmental priorities. The key air emissions comprise nitrogen oxides (NOx), sulphur oxides (SOx), dust and volatile organic compounds (VOC). In 2018, the key air emissions dropped by 6.7% year-on-year.

The current strategy for reducing air emissions envisages upgrading gas treatment systems, introducing modern technology and eliminating obsolete equipment.

In 2018, EVRAZ ZSMK completed the reconstruction of the gas treatment equipment at its sintering facility and made several improvements to reduce the plant’s key air emissions by 6.5 thousand tonnes in 2018.

EVRAZ NTMK brought blast furnace No. 7 online during the reporting period. Emissions from pig iron produced in the furnace are captured and impurities are removed using bag filters, which minimises atmospheric pollution. The powerful aspiration system has reduced the residual dust content of the exhaust gases by 40%. The technical re-equipment of the aspiration system for mixers No. 1, 2 and 3 in oxygen converter shop No. 1 is being completed, and the capital repair programme for the dust-gas cleaning equipment is being implemented at the plant’s shops and production lines. EVRAZ NTMK’s key air emissions have been reduced by 0.5 thousand tonnes.

Greenhouse gas emissions

EVRAZ operations generate carbon dioxide and other greenhouse gas (GHG) emissions. The Group understands that mitigating climate change risks is a crucial element in planning for the future welfare of its employees and local communities throughout its global enterprises.

EVRAZ understands the urgency of preventing climate change and supports the global effort to reduce the emission of GHGs into the atmosphere. In compliance with the Companies Act 2006 (Strategic and Directors’ Report) Regulations 2013, the Group measures the full GHG emissions at its facilities and has taken part in the CDP Climate Change Programme since 2011.

A key aspect of EVRAZ strategy is to reduce GHG emissions by consuming fewer energy resources.

The Group has set a five-year target for its Steel segment to keep the GHG intensity ratio below 2 tonnes of carbon dioxide (CO2) equivalent (tCO2e) per tonne of steel cast. In 2018 the target was almost achieved (2.005).

EVRAZ measures direct (Scope 1) emissions of all seven “Kyoto” GHGsCarbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC) and perfluorocarbons (PFC), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3) and indirect (Scope 2) emissions from the use of electricity and heat. The inventory approachThe inventory of emissions includes all entities that EVRAZ controls. Entities that were disposed of during the year were included for the period they were part of the Group. Only entities that were deemed immaterial for consolidated emissions based on their operational indicators were omitted. Direct CO2 emissions from operations were calculated using the carbon balance method for carbon flows within production facilities, including fuel use. Emissions of other GHGs were calculated based on measured volumes, inventory changes or IPCC 2006 factors and models (including for post-mining coal methane emissions) where direct measurement data were not available. Indirect emissions were estimated using emission factors specifically developed for the country or region, if available, or otherwise factors provided by UK Defra. was based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (IPCC 2006) and the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard. The Group reports data in terms of tCO2e, calculated using the IPCC 2006 global warming potentials.

EVRAZ has collected GHG emissions data for 2018 and compared them with the 2014-17 levels. The Steel segment continues to generate more than half of the gross GHG emissions from the Group’s operations. Nearly 91% of the Coal segment’s full emissions come from fugitive methane (CH4) leakage, which is caused by methane ventilation from underground mines and post-mining emissions from coal.

In 2018, the overall GHG emissions from EVRAZ operations decreased by around 6.9% year-on-year. Emissions of CO2 fell by 5.3% (or 1.49 million tCO2e) due to the cease in operations in Ukraine and lower steel production at EVRAZ NTMK. In the Coal segment, CH4 emissions reduced by 7.6% (- 625 ths. tCO2e) as a result of lower volumes of underground mining (-1.4 mln.t) and higher open pit mining at Raspadskiy Open Pit and Raspadskaya-Koksovaya (+2.67 mln.t).

In 2018, the Group decreased its Scope 1 emissions by 6% and brought down its Scope 2 emissions by 15%. The former was due to a reduction in both carbon dioxide and methane emissions, which accounted for some 5% of total emissions, while the latter was due to lower energy purchases at EVRAZ ZSMK and the cease in operations in Ukraine.

EVRAZ reports an intensity ratio relating its annual GHG emissions to its activities: total Scope 1 and 2 emissions per consolidated revenue for the Group overall and each operating segment, and specific emissions in the Steel segment per tonne of steel cast for 2014-18.  

EVRAZ GHG emissions in 2018,
million tCO2e

GHG emissions per net revenue,
kg CO2e/US$

Specific Scope 1 and 2 GHG emissions from Steel segment (incl. NA),
tCO2e per tonne of steel cast


EVRAZ GHG emissions, million tCO2e
2018 2017 The results for 2017 were recalculated due to improvements in data quality and several identified inaccuracies regarding material flows, which resulted in a downward correction of 0.017 million tCO2e for Scope 1 emissions. 2016 2015 2014
Direct (Scope 1) 34.56 36.68 35.81 36.87 39.05
CO2 26.86 28.35 28.76 29.13 31.08
CH4 7.64 8.26 6.99 7.67 7.89
N2O 0.06 0.06 0.07 0.07 0.08
PFC and HFC 0.00009 0.00003 0.0001 0.0002 0.0002
SF6
NF3
Indirect (Scope 2) 4.23 4.97 5.02 6.17 7.96
Total GHG emissions 38.79 41.65 40.83 43.04 47.00

Water consumption and discharge

Fresh water intake for production purposesCalculation perimeter includes the following subsidiaries: EVRAZ NTMK, EVRAZ KGOK, EVRAZ ZSMK, Evrazruda, EVRAZ DMZ, Raspadskaya Coal Company, EVRAZ Caspian Steel, EVRAZ Palini e Bertoli, EVRAZ Vanady Tula, EVRAZ Stratcor, EVRAZ Nikom, EVRAZ Calgary, EVRAZ Camrose, EVRAZ Portland, EVRAZ Pueblo, EVRAZ Red Deer, EVRAZ Regina., million cubic metres

EVRAZ strives to make efficient use of water resources and prevent any negative water quality impacts through environmental incidents.

In 2018, almost 81% of the Group’s total water intake came from surface sources, including rivers, lakes and reservoirs, down 4 percentage points year-on-year.

During the reporting period, the ongoing programmes to improve the water management at EVRAZ operations continued to deliver environmental benefits. In 2018, the Group consumed 93 million cubic metres less fresh water than in 2017, for a year-on-year reduction of 29.1%. Almost 85.3 million cubic metres have been excluded out of the balance due to the exclusion of assets in 2018.

The new five-year target is to decrease fresh water consumption by 10% compared with the baseline of 2016. The Group has set 2016 (231 million cubic metres) as a new baseline, taking into account asset exclusion.

While water pumped from mines (dewatering) is not included in the fresh water consumption target, pumped water is partly used for technological needs. In 2018, EVRAZ pumped out and used 17.36 million cubic metres of mine water, compared with 21.15 million cubic metres a year earlier.

Waste management

Mining and steelmaking operations produce significant amounts of waste, including the surplus rock, spent ore and tailings left over after processing ore and concentrates. EVRAZ aims to reduce the amount of waste that it produces, re-use natural resources where possible and dispose of waste in a manner that minimises the environmental impact and maximises operational and financial efficiency.

In line with the Group’s strategy to reduce waste storage volumes and enhance waste disposal, EVRAZ operations regularly review opportunities to recycle and re-use waste.

The main waste by-product that gets recycled is metallurgical slag, which includes materials that previously had been disposed off in dumps. Processing this waste has allowed the Group to maintain a recycling rate of more than 100%. Most of the old slag in these dumps has been processed over the past few years, which is the primary reason why the recycling rate is forecast to decline going forward. The management has decided to continue its waste minimisation efforts and set a target to reuse or recycle at least 95% of waste.

In 2018, EVRAZ steel mills generated 7.95 million tonnes of metallurgical waste and by-products, including slag, sludge, scale and others, and recycled or re-used 8.85 million tonnes of material. Overall, the Group recycled or re-used 111.3% of non-mining waste and by-products in 2018, compared with 104.7% a year earlier.

EVRAZ strategy for dealing with non-hazardous mining wastes, such as depleted rock, tailings and overburden, is to use them where possible for land rehabilitation and the construction of dams or roads. In 2018, 6% or 60.7 million tonnes of such waste material were re-used, compared with 29.7% or 50.4 million tonnes in 2017.

All non-recyclable waste is stored in facilities that are designed to prevent any harmful substances contained in the waste from escaping into the environment. Safety at such facilities is monitored extremely closely, and steps have been taken to mitigate as far as possible any danger to third parties in an emergency.

The largest tailings dams of EVRAZ are owned by EVRAZ ZSMK, EVRAZ KGOK and Evrazruda. The company has a dam safety management system in accordance with the current legislative procedures that cover all stages of dam life cycle: design, construction, operation and asset retirement. All the dams have safety zones now and one village (107 houses) has been completely resettled by EVRAZ to avoid victims in case of accident with the EVRAZ ZSMK dam. The process procedures are controlled by the operations and audited by the HSE personal of the sites, the regulator’s inspectors and the group’s internal auditors. In 2016, two out of three dams were audited by industrial safety auditors and the measures to improve the effectiveness of controls were proposed. All the measures have been implemented. The next audit of dams operation will be conducted during 2019. The management review of the issue was conducted during the HSE Committee of BoD held on 5 February 2019.

Waste recycling rate, %
Waste management strategy



Awards

EVRAZ NTMK “Leader in Environmental Management in Russia – 2018 as the best environmentally responsible city-forming enterprise”. Awarding organisation: Russia-wide Review Competition for Health and Ecology.

EVRAZ ZSMK “Winner of the Ecology and Environmental Management 2018 competition”. Awarding organisation: Independent Public Council “100 Best Organizations of Russia”.