Climate change
Projects and programs to reduce greenhouse gas emissions
According to the World Steel Association, steelmaking generates 7% to 9% of direct greenhouse gas (“GHG”) emissions from the global use of fossil fuels.
As a global steel industry leader, Severstal is committed to ensuring transparency and action in relation to climate-related risks and opportunities.
Severstal was one of the first companies to join and actively contribute to the Worldsteel’s ‘Step up’ programme, which aims to reduce GHG emissions by the global steel industry through the introduction of a new methodology.
In 2020 we completed 15 GHG emission reduction projects with the cumulative effect over 150 thousand tonnes of СО2 equivalent per year, which is equivalent to 0.5% reduction in the overall greenhouse gas emissions.
We invested 1,802.09 million roubles in in GHG emission reduction projects.
The smelting of steel from iron ore is accompanied by significant CO2 emissions, which the World Steel Association estimates between 7 and 9% of the global GHG emissions in the world.
In 2019 Severstal created a new center of expertise for the use of hydrogen technologies.
The goal is to research existing technologies for producing hydrogen from various sources for its further joint injection to replace carbon-containing fuel in a blast furnace.
Climate Change Goals and Objectives
Severstal set certain goals in GHG emission reduction:
Reduce our greenhouse gas emissions per tonne of steel byReduce our greenhouse gas emissions per tonne of steel by
10% from 2020 to 2030
«We are clearly committed to reducing our environmental footprint and recognize that it is vitally important for the steelmaking industry to reduce direct and indirect emissions, including GHG emissions, and contribute to the global effort driven by the Paris Agreement. We continuously deliver on our commitments and take on even more challenging goals. We set an objective to achieve a 3% reduction by 2023, and a 10% reduction by 2030. Our stakeholders can be certain that it is not an abstract promise, but rather a well-defined plan backed up by specific items of our investment programme. As a vertically integrated business, we also control and take responsibility for emissions at all stages of our mining and manufacturing operations».
Alexander Shevelev, Chief Executive Officer, Severstal
GHG Reduction Strategy
According to Worldsteel, Severstal has one of the lowest greenhouse gas emission intensity levels in the industry, and we strive to further reduction of GHG emissions and become a Top 15% steelmaker worldwide by GHG emission intensity.
CO₂ Data Report 2020 published by World Steel Association indicates that Cherepovets Steel Mill is 11th out of 50 full cycle steelmakers worldwide by the intensity of GHG emissions in steelmaking.
What Severstal Leadership Does for GHG Management
The Board of Severstal recognizes climate change as a material aspect affecting Severstal, studies climate risks carefully, takes action to minimize these risks and strives to leverage opportunities in low-carbon development.
Every quarter, the Board discusses the impact of climate changes on Severstal, evaluates the efficiency of our corporate management system as applicable to climate change, and develops strategic and tactical plans to ensure our sustainable development in changing climate.
Severstal climate action strategy
Olga Kalashnikova, Head of Environment, on Severstal climate strategy
Direct and indirect greenhouse gas emissions (scopes 1 and 2), million tones of CO2e*
GRI 305-1 GRI 305-2
million tones of CO2e
Scope 1
Scope 2
Scope 1 and 2 GHG emissions data for 2020 differs from that provided in Annual Report 2020 due to minor reduction adjustments following the assurance by Deloitte CIS that was completed in May 2021
GHG emission intensity
tonnes of CO2 per 1 tonne of steel
Carbon intensity of the Company
Global average
In 2021, the emission intensity increased by 0.8% compared to 2020 and reached 2.078 tonnes of СO₂ per tonne of steel. The increase in carbon intensity is mainly due to the increase in the production of cast iron after the commissioning of coke battery No. 11 and blast furnace No. 3
Participation in international climate action and ratings
We support prominent climate initiatives, such as Worldsteel Step Up programme focused on selecting the best available technologies and participate in the Climate Action 100+ initiative of the largest GHG emitters to reduce GHG emissions.
In 2021, Severstal received B rating of the Carbon Disclosure Project (CDP) in the Climate nomination, and С- rating in Supplier Management.
Further improvement of completeness and quality of climate data under CDP, and the development of a corporate GHG emission management system meeting best standards and practices are on our priority list.
Climate Memorandum
“Achieving a low carbon future together”
In this regard, Severstal has developed the Climate Memorandum «Achieving a low carbon future together» to support global efforts to prevent further climate change. Severstal invites partners, including potential ones, to join the Climate Memorandum.
- Principle 1. To integrate the climate agenda into corporate governance practices
- Principle 2. To assess GHG emissions and set goals to reduce them
- Principle 3. To manage climate risks and adapt to climate change
- Principle 4. To manage climate risks and adapt to climate change
- Principle 5. To establish climate-responsible stakeholder engagement