Severstal's position on Climate Change (1165803)
February 04 2021 - 4:43AM
UK Regulatory
PAO Severstal (SVST)
Severstal's position on Climate Change
04-Feb-2021 / 12:42 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Severstal's position on Climate Change
PAO Severstal is a vertically integrated steel and steel-related mining company with its major assets in Russia.
Severstal is committed to the sustainable development of the Russian economy and Russia's climate change policy,
Severstal has set a goal of reducing GHG intensity per tonne of steel by 3% by 2023 compared with the 2020 base year.
The total reduction will be about one million tonnes CO2-e.
Welcoming the strategic goal of Russia's state climate policy taken as a whole and carbon regulation in particular, we
believe that state support measures for research in low-carbon technologies for the steel industry and promotion of
climate related projects should become an important component of climate policy, including establishment of a
regulatory environment (changes in tax legislation, establishing a national framework of climate projects) and
infrastructure (development of hydrogen energy, availability of "long" investments, funding innovation, facilitating
the development of steel scrap market, etc.).
Contributing to the global efforts to achieve the Paris Agreement goals, Severstal is fulfilling its commitments
already announced, and it is assuming additional commitments. Severstal believes that GHG emissions reduction targets
should be consistent with the Paris Agreement goals and take into account the nationally determined contributions.
Severstal believes that the rate of GHG emissions reduction may differ significantly depending on the geographical
location of production facilities and different opportunities, including access to breakthrough technologies and the
availability of low carbon infrastructure. For "primary" steel production, a separate goal should be set which is
driven by technology features and the lack of alternative technologies (not all steel grades can be produced from steel
scrap).
Facilitating bringing financial flows in line with the low carbon development pathway, Severstal has been investing in
renewable energy by participating in an international pilot project for production of wind power plants' equipment in
Russia. Severstal has a joint venture with Windar Renovables and RUSNANO - VRS Towers LLC, launched on 12 December,
2018. The expected annual capacity is 300 MWt. In addition to external sustainable investments Severstal takes into
account CO2 factors in the investment related decisions.
As a responsible company, Severstal considers it necessary to assess GHG emissions at all stages of raw material mining
and production of our products. Severstal believes that the carbon footprint and carbon intensity should be calculated
using a common methodology approved by industry associations.
Understanding the importance of assessing the Company's contribution to global GHG emissions, Severstal has calculated
its GHG emissions for Scopes 1, 2 and 3; Severstal supports mandatory independent assurance of GHG emission information
which would allow for an unbiased assessment of companies' contribution to GHG emissions as a company, and as an
industry as a whole.
As a result of the necessity to adapt Severstal's assets to the potential adverse impacts of climate change, Severstal
recognises the physical risks associated with climate change, and, for example, monitors on a regular basis the
condition of buildings, structures and permafrost soils on sites located in the Arctic region. We share the TCFD's view
that better information would allow companies to incorporate climate-related risks and opportunities into their risk
management and strategic planning processes. As this occurs, companies' understanding of the financial implications
associated with climate change will grow, empowering investment to sustainable and resilient solutions, opportunities,
and business models.
Being open to cooperation in looking for optimal approaches to decarbonisation in the steel industry, Severstal is
ready to cooperate willingly with any legitimate mechanisms focused on GHG emissions reduction. At the same time,
Severstal supports the idea of establishing implementation rules regarding Article 6 of the Paris Agreement as soon as
possible, including requirements for bilateral (or multilateral) projects (clause 6.4).
Recognising that, due to the nature of traditional technologies, the steel industry is one of those industries where it
is difficult to dramatically reduce GHG emissions, Severstal wishes to draw attention to compensation measures that
facilitate GHG absorption, including carbon capture and storage technologies, certificates of origin of electricity and
potential of projects in "land use, land-use change and forestry" (LULUCF).
Demonstrating the seriousness of its intentions, Severstal has been supporting climate initiatives and taking an active
part in expert platforms such as: the Net Zero Steel Initiative; Climate Action 100+ (an investor initiative to ensure
that the world's largest GHG emitters take the necessary measures in connection with climate change); the Net-zero
Steel Pathway Methodology Project (development of methodological approaches); Step Up WSA's positive change programme
(selection of the best available technologies).
In accordance with the Paris Agreement, Severstal is striving to cover all the aspects of combating climate change and
take the maximum possible actions:
? by making efforts to limit the temperature increase, it is eager to reduce GHG emissions throughout the entire
production chain, and looking for additional opportunities to compensate for non-reducible emissions;
? by building resilience to climate change, it has been taking measures to adapt the Company's assets;
? by directing its financial flows in line with the low-carbon pathway, it has been investing in renewable energy;
taking into account CO2 factors in making investment-related decisions, etc.
Alexander Shevelev,
Chief Executive Officer
AO Severstal Management
For further information please contact:
Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66
evgenii.belov@severstal.com
Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66
anastasia.mishanina@severstal.com
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P?? Severstal is one of the world's leading vertically
integrated steel and steel related mining companies, with assets in
Russia, Latvia and Poland. Severstal is listed on MOEX and the
company's GDRs are traded on the LSE. Severstal reported revenue of
USD6,870 million and EBITDA of USD2,422 million in 2020.
Severstal's crude steel production in 2020 reached 11.3 million
tonnes. www.severstal.com
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ISIN: US8181503025
Category Code: MSCH
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 92946
EQS News ID: 1165803
End of Announcement EQS News Service
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