SVST.L Regulatory News (SVST)

Severstal commits to cutting its carbon emissions by 3% by 2023 and almost doubles its target for reducing total atmospheric emissions

30 July 2020, Moscow - PAO Severstal ("Severstal"; "the Company"), one of the world's leading vertically integrated steel and steel-related mining companies, today announces a public target to cut its greenhouse gas emissions intensity by 3% over the next three years compared with 2020[1]. It is the first stage of a longer-term strategy to reduce its carbon footprint and increase its contribution to meeting the goals set by the Paris Climate Agreement.

We have identified the following investment projects that should contribute most significantly to this target are: the construction of long-range wire mill 170, implementation of argon purging of metal in a steel casting ladle from production to casting, increasing the share of sintering ore from Yakovlevskiy Mine in sintering mix, the reconstruction of the solid fuel unit Sinter plant 2 as well as the launch of top-pressure recovery turbines #16 & #25.

In addition, Severstal has revised and upgraded its total atmospheric emissions reduction targets for 2025. Following the Company's decision to fit new gas cleaning equipment at the Cherepovets Steel Mill's sinter processing plant, Severstal now expects to reduce its total atmospheric emissions by 13% (66,500 tonnes) against 2017 levels, compared with the previously announced target of 7%.

Alexander Shevelev, CEO of Severstal, commented:

"Severstal recognises the urgency for the steel industry to reduce its direct and indirect emissions and contribute towards the goals of the Paris Climate Agreement and is wholly committed to showing leadership in reducing its own climate contribution. For this reason, we continue to challenge ourselves to achieve more in this area.

The three-year GHG emissions intensity reduction target we have set is underpinned by detailed programmes and a roadmap of specific investment projects giving our stakeholders confidence that the 3% reduction is a near-term commitment rather than an abstract promise.

It is important to note that as a vertically-integrated company, we control and bear responsibility for emissions at every stage of our production chain - from the extraction of raw materials to the development of finished products."

In the first half of 2020, Severstal has already invested 1.34 billion roubles in environmental initiatives, compared with approximately 750 million roubles in the full year 2019.

Further information:

Since 1990, the intensity of greenhouse gas emissions from steel production at the Cherepovets Steel Mill (Severstal's main asset, "CherMK") has decreased by 43%. According to the World Steel Association ("worldsteel"), Severstal is in the first quartile of companies in the steel industry with the lowest greenhouse gas emissions. Greenhouse gas emissions intensity of CherMK in 2019 amounted to 2.08 tonnes of CO2 equivalent / tonnes of liquid steel (Scopes 1-3). Over the past year, Severstal has climbed three places in the worldsteel ranking of companies with the lowest specific greenhouse gas emissions to rank 13th out of 64 companies with comparable technologies.

Severstal was the first Russian company in the industry to pilot the worldsteel "Step up" programme, which aims to find production processes along the entire production chain that can be improved to achieve the greatest results in terms of reducing greenhouse gas emissions. According to an expert assessment, the greatest impact is possible from the introduction and development of innovative technologies, more efficient methods of generating electricity, reducing consumption factors in the blast furnace and steelmaking processes, and using better quality raw materials.

More information available - https://www.severstal.com/rus/sustainable-development

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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PАО 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 RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $8,157 million and EBITDA of $2,805 million in 2019. Severstal's crude steel production in 2019 reached 11.8 million tonnes.

Severstal is looking for startups and innovative companies. You can get acquainted with the directions of interest and leave a request on the website innovations.severstal.com.

www.severstal.com

[1] Considering the in-plan realisation of our investment programme, including the scheduled shutdown for planned maintenance of Blast Furnance #5