OMK Named National Sustainable Development Leader in RUIE and Moscow Stock Exchange RAEX Europe and ESG Index Rankings

The United Metallurgical Company (AO OMK, Moscow) placed 34-th in the ESG rankings of the RAEX Europe Rating Agency and has again been named among Russian leaders in the RUIE ESG 2020 indices.

OMK projects in the social category of the ESG rankings were given the highest grades by RAEX-Europe experts (placed 15-th in Russia). They include programs to develop the human capital, for production safety, human rights, and to develop local communities. Programs in the Environmental and Governance categories brought the Company, respectively, the 34-th and the 40-th positions in the national rankings.

OMK has maintained leadership in the 7-th edition of the ESG indices from the Russian Union of Industrialists and Entrepreneurs (RUIE). The Company is one of the 38 Russian companies leading the sustainable development vector index. This index includes facilities that demonstrate an unequivocal positive trend with respect to indicators associated with compensation, personnel training, industrial safety, support for local communities, and the environmental parameter suite. As for the responsibility and transparency index, OMK is one of the 26 leaders in Group B. The companies included in the index demonstrate a high degree of disclosure regarding social and economic indicators under corporate social responsibility.

“Unlike most companies included in the ESG indices, OMK is a privately held company, and exchange disclosure rules do not apply. At the same time, we are committed to the principles of transparency and accountability, and it is important that we develop while keeping the communication lines to society open. We have integrated sustainable development objectives into our core activities and have taken on additional social responsibilities. We voluntarily provide reports on these activities based on international standards. We thank the esteemed experts for the high grades”, noted OMK Governance Board Chair Natalya Eremina.

*ESG: Environment, Social, Governance.

BACKGROUND:

OMK's corporate social policy is aligned with the national priorities while its projects pursue the UN’s sustainable development objectives. OMK is working relentlessly to reduce steelmaking facilities’ impact to the environment, to reduce specific resource utilization, and to improve business transparency and openness.

The Company’s business is fully aligned with the public interest. OMK’s CSR programs meet the social demand and are relevant to the towns that host Company facilities. OMK proceeds in partnerships with the authorities, other business, and local communities. In 2020, for instance, the Company proactively funded projects designed to help unprotected populations and medical institutions during the pandemic. In particular, the Company offered aid to its employees and monotown residents. OMK provided targeted aid to healthcare institutions totaling in excess of RUB 150,000,000. It also partnered with the OMK-Uchastiye Charity Foundation as part of the National People’s Front #Together volunteer movement to deliver food care packages to people in need and to care for people’s mental health during the quarantine. Annually, OMK invests about 1 billion rubles into social projects.

OMK is reducing its environmental footprint by discontinuing the use of obsolete and environmentally backward production methods, by completely upgrading equipment, and using the most advanced nature preservation and energy saving technologies. OMK facilities are systematically reducing hazardous emissions into the environment and almost completely recycle their solid waste. In particular, the percentage of recycled waste for the entire OMK Group was 87.1% in 2019 which is commensurate with national industry best practices.

ОМК has created an efficient governance system that helps postulate social responsibility objectives and track completion. The system uses OMK's in-house CSR Policy. Activities are coordinated by a CSR committee chaired by the OMK Governance Board Chair. OMK is one of the safest companies in the cast iron and steel sector. In 2019, the LTIFR metric dropped to 0.72. This is an outcome that is as good as global best practices. The Company continues to pursue its strategic objective of zero injuries. OMK also builds responsible supply chains: it engages with suppliers that share its requirements for compliance with the labor, environmental, ethical, and social standards.

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