NLMK updates 2023 GHG emission reduction targets

Press release

21 September 2020

NLMK Group updates GHG emission reduction targets leading up to 2023

NLMK Group is committed to continue reducing its greenhouse gas emissions in the period leading up to 2023, while growing steel production at the same time. Its target specific emission level will be 1.91 tonnes of СО2 per tonne of steel, compared to 1.98 tonnes in 2019* (a 3.5% reduction).

NLMK's programme to cut GHG emissions includes investment projects aimed at boosting energy efficiency, reducing the consumption of carbon-containing fuels and developing decarbonization technologies.

The launch of a new power station running on secondary resources (by-product steelmaking and blast furnace gases) at NLMK in 2023 will enable cutting СО2 emissions by 650,000 tonnes (36 kg per tonne of steel) per year. The implementation of new ore beneficiation technologies at Stoilensky Mining and Beneficiation Plant in 2021-2023 will increase the Fe content in the charge and bring down fuel consumption at NLMK blast furnaces, cutting СО2 emissions by an additional 800,000 tonnes (44 kg per tonne of steel) per year. NLMK Group is also pursuing a portfolio of R&D projects aimed at integrating the use of hydrogen into production processes, extraction and recovery of СО2, and other decarbonization initiatives.

Grigory Fedorishin, NLMK Group CEO, said:

"NLMK Group continually strives to reduce its environmental and carbon footprint. The СО2 emission reduction targets set for the Group's production sites are backed by specific projects. We are also testing innovation technologies that will enable us to make the next step toward cutting our СО2 emissions beyond the Strategy 2022 horizon."

NLMK has decreased its СО2 emissions per tonne of steel by 3% over the last five years from 2.04 in 2015 to 1.98 in 2019 against the backdrop of growing production.

* The indicator includes both direct GHG emissions and GHG emissions from the generation of electric energy consumed by operations (Scopes 1 and 2 in The Greenhouse Gas Protocol (GHG Protocol) methodology approved by the World Business Council for Sustainable Development). 2019 specific emissions and production volumes have been adjusted to factor in major repairs at NLMK Lipetsk BF and BOF operations that resulted in a corresponding one-off indicator reduction.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group's steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe and the United States. The Company's steel production capacity exceeds 17 million tonnes per year.

NLMK's ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1.

For more details on NLMK shareholder capital, please follow the link.