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 CO2 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.
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.
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.
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 C- 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.