About this Report

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Approach to reporting

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The 2019 Sustainability Report (“the Report”) covers the key results of EVRAZ’s sustainability performance between 1 January 2019 and 31 December 2019 and includes the Group’s plans for 2020 and the medium term.

EVRAZ began preparing annual reports in 2004, and these reports incorporated an extended chapter on Corporate Social Responsibility (CSR). Starting from 2018 EVRAZ took the decision to publish a separate report specifically dedicated to sustainability. The Group’s most recent reports, together with additional information about its sustainability performance, can be accessed on EVRAZ’s official website.

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This Report, covering the events that took place in 2019, was prepared in accordance with Global Reporting Initiative Sustainability Reporting Standards: Core option (“GRI Standards”). In order to ensure compliance with GRI Standards, the Group’s internal procedures relating to the Report’s preparation were reviewed.

The Report describes EVRAZ’s sustainable development management practices and was prepared in accordance with the interests of the investment community and other stakeholders. The Sustainability Report is published in both the English and Russian languages.

Report boundaries

The sustainability information contained in this Report covers the performance of the following EVRAZ assets, unless otherwise indicated in the text of the Report:

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Assets included in the Report boundaries

Segment	Company (referenced in the Report)
Steel segment	EVRAZ Consolidated West-Siberian Metallurgical Plant (EVRAZ ZSMK) (including Evrazruda) EVRAZ Nizhny Tagil Metallurgical Plant (EVRAZ NTMK) EVRAZ Kachkanarsky Mining-and-Processing Integrated Works (EVRAZ KGOK) EVRAZ Caspian Steel EVRAZ Vanady Tula EVRAZ Nikom
Coal segment	Raspadskaya Coal Company (Mezhdurechensk and Novokuznetsk sites) Mezhegeyugol Coal Company
Steel, North America segment	EVRAZ Inc. NA (including EVRAZ Portland, EVRAZ Pueblo) EVRAZ Inc. NA Canada (including EVRAZ Camrose, EVRAZ Red Deer, EVRAZ Calgary, EVRAZ Regina)
Other	Sales, services, and logistics companies

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Identification of material topics

We conducted a materiality assessment to select topics that mattered most to the business for inclusion in the Report. The assessment comprised three main stages: analysis of open sources, collecting stakeholder feedback and drawing up a list of material topics. The materiality assessment was performed in accordance with GRI Standards. When assessing whether a topic is material, two main criteria are used: the significance of economic, environmental, or social impacts and the influence on stakeholder assessments and decisions.

Approach to identification of material topics

In 2019, we drew up a list of 16 material topics, including two new topics: supplier environmental assessment, diversity and equal opportunity. These topics were also prioritised through a survey of members of the Working Group about the preparation of the Report, held in December 2019.

GRI disclosure requirements were met equally for all topics, irrespective of the priority level. At the same time, topics with a high level of materiality were given special attention in terms of the level of additional detail provided in the Report.

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Material topics

Category	№	Topic	Section	Within the Group	Outside the Group
Economic	1	Economic performance	Sustainability risk management Direct economic value generated and distributed Lowering air emissions	V	V
	2	Market presence	Motivation and employee engagement	V	V
	3	Indirect economic impacts	Local community support projects	V	V
	4	Anti-corruption	Ethics and business conduct	V	V
	5	Procurement impacts	Management approach	V	V
Environmental	6	Energy	Boosting energy efficiency	V	V
	7	Water	Approach to environmental management Environmental strategy Balancing water supply	V	V
	8	Biodiversity	Approach to environmental management	V	V
	9	Emissions	Approach to environmental management Lowering air emissions	V	V
	10	Effluents and waste	Approach to environmental management Environmental strategy Balancing water supply Waste stewardship	V	V
	11	Environmental compliance	Approach to environmental management	V	–
Social	12	Employment	Employees Management approach Personnel structure	V	V
	13	Occupational health and safety	Health, safety, and environment governance Health and Safety management Development of the safety culture Occupational injury prevention Treatment of occupational diseases Emergency prevention and response	V	V
	14	Training and education	Management approach Learning and development	V	–
	15	Diversity and equal opportunity	Management approach	V	V
	16	Local communities	Management approach	V	V

Data preparation methodology

The calculation, collection, and consolidation of economic, environmental, and social indicators presented in the Report were carried out in accordance with GRI Standard reporting principles and requirements and on the basis of the current procedures in place for collecting and preparing management information in the Group.

Financial information is presented in US dollars. If amounts were in Russian roubles, for conversion purposes the average US dollar exchange rate for 2019 adopted by the Central Bank of Russia was used.

Performance indicators, as well as data on sustainable development, are presented in units of the International System of Units (SI).

Sources of information related to personnel management, labour protection, industrial safety, and environmental protection are mandatory state statistical forms. On an annual basis relevant departments report via these forms to local governments and the Group's management.

In order to ensure the comparability of data, the most significant indicators related to the Group activities are presented for the previous three years.

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Assurance

The Group engaged EY to provide independent assurance of the Sustainability Report in order to ensure the quality, accuracy, and completeness of the reported data.

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Contact Information

The Group considers and carefully analyses feedback from stakeholders on the completeness, objectivity, and materiality of information disclosed in its sustainability reports, which helps improve our sustainability performance and non-financial reporting processes. We always welcome your suggestions about the Report and our performance.

Please send any questions and suggestions you have to:

IR Department
Moscow: +7 (495) 232-13-70
E-mail: ir@evraz.com