Sustainable
development

Severstal is the industry-leading developer and supplier of new technologies. We finance multiple R&D programmes every year. Our R&D programmes focus on the development of more efficient and sometimes exclusive technologies and products, and also on improving the features and quality of our products and reducing costs.

In 2018, Severstal created an in-house technology park providing a unique opportunity for the development of innovative steelmaking ideas using the actual production equipment of Cherepovets Steel Mill. Participants of joint projects hosted by the technology park, including research centres, educational institutions and innovation start-ups have an opportunity to use its infrastructure and services. If there is a confirmed demand from Severstal for a proposed product, the technology park runs a pilot project together with Cherepovets Steel Mill and then scales and commercialises its results.

Severstal is committed to strategic partnership with regions and cities where we work. Severstal signs agreements on social and economic partnership to achieve these goals. As a rule, local authorities commit to supporting Severstal’s business interests, while Severstal commits to investing in regional social and economic development, creating stable jobs for local residents and working on projects to improve the environment and ensure occupational health and industrial safety.

Severstal has launched and keeps supporting projects on sustainable social and economic development of its regions, such as the Agency for Urban Development, Cherepovets Investment Agency and Cherepovets Industry Park.

Severstal is paying a lot of attention to climate action and its programme to reduce GHG emissions. Severstal has become one of the first members of the World Steel Association StepUp program, which is aimed at reduction of greenhouse gas emissions. Participation in the programme will allow to identify key drivers for reducing emissions and to develop a programme of initiatives under the Step up umbrella to set new industry best practices.

Vorkutaugol utilises methane produced during coal mining as a fuel in its boilers at Vorkutinskaya, Komsomolskaya, Zapolyarnaya and Vorgashorskaya mines. Heat produced from burning the methane is used in mine operations to heat and ventilate buildings and site facilities, to supply hot water and to provide a flow of air to the mine. In 2018 we used 77,551.0 thousand cubic metres of methane, reducing our greenhouse gas emissions by 27.3 thousand tonnes of СО2 equivalent compared to 2017.

Severstal designs tools for multi-faceted cooperation focused on addressing specific social issues and on developing the inherent potential of the regions. Key areas of cooperation are employment of local residents, education and career orientation of youth, healthcare, and prevention of child neglect and social orphanhood, development of municipalities, and support for culture.

Starting 2005, Severstal has been successfully developing a Way Home programme focused on prevention of child neglect and juvenile delinquency in Cherepovets and other cities where our assets are located. The success of this programme is driven by outstanding expertise of its coordinators and is a great demonstration of successful four-way partnership between the state, businesses, the society and the media. Due to the programme, more than 16,000 people receive support on an annual basis, more than2,000 children stay in their biological families, thousands of minors have reduced delinquency risk.

Severstal enforces a number of programmes aimed at building a long-term talent pool and training skilled professionals Severstal is trying to trigger the interest of the youth towards the mining and steelmaking industry, making significant investments in education, and works with schools and universities. Severstal partners on talent development with approximately 20 specialised universities, including St. Petersburg State University MISIS, Moscow State Mining University, Vologda State Technical University, Cherepovets State University and Ivanovo State Power Engineering University. The Company also supports several vocational schools and high schools offering specialised Severstal programmes in the cities where we operate.

Our investment programme focuses on increasing the share of high-value-added products.

More than 4,000 new employees join Severstal every year on non-discriminatory conditions.

Severstal supports the development of small and medium business (SMB) infrastructure as it drives self-employment. The Agency for Urban Development co-founded by Severstal is the operator of the Guarantee Fund government programme and provides loan guarantees to entrepreneurs under this programme. The Agency is a leading supporter of small and medium businesses making a significant contribution to the diversification of the regional economy. Since its activities in Cherepovets, more than 2,500 new businesses were founded and over 10,000 jobs created. Support from Severstal helped the City of Cherepovets to get recognition as an area of advanced social and economic development.