Ferrexpo : Responsible Business Report 2021

SUPPORTING UKRAINE

Ferrexpo plc Responsible Business Report 2021

INTRODUCTION	SUPPORTING UKRAINE	WORKFORCE	ENVIRONMENT	ETHICAL BUSINESS	COMMUNITIES	APPENDICES

Introduction

RESPONSIBLE BUSINESS PROGRESS IN 2021

At Ferrexpo, Responsible Business represents the Group's activities to promote a safe and sustainable business, for the benefit of all stakeholders. This report represents the Group's seventh year of standalone reporting of its sustainability activities, and is published in accordance with the Global Reporting Initiative ("GRI") framework of reporting. The Group is a constituent of the FTSE4Good Index and has a MSCI ESG Rating of BBB1.

1 For further information on MSCI ESG Ratings please see www.ferrexpo.com/disclaimer.

01 SUPPORTING UKRAINE

02 WORKFORCE

04

03ETHICAL

ENVIRONMENTBUSINESS

Contents

			About this report	02
			Conflict in Ukraine	05
			2021 performance	07
			Ferrexpo overview	08
			Our history	09
			Our performance	10
			Review of 2021	11
			Business model	12
			Purpose and values	13
			Sustainability at Ferrexpo	14
			Strategic Priority: Green Steel	15
			Materiality assessment	17
			UN Sustainable Development Goals	18
			Supporting Ukraine	19
	05		Our Workforce	26
		Protecting Environments	42
COMMUNITIES
Ethical Business	55
			Communities	63
			Appendices	68

01	Ferrexpo plc Responsible Business Report 2021

INTRODUCTION

SUPPORTING UKRAINE

WORKFORCE

ENVIRONMENT

ETHICAL BUSINESS

COMMUNITIES

APPENDICES

ABOUT

THIS REPORT

Marking seven years of standalone sustainability reporting.

The purpose of this report is to provide a comprehensive, standalone document summarising all of the Group's work in the diverse field of sustainability, covering a broad range of topics from safety, to greenhouse gas emissions, biodiversity and governance. The audience for this Responsible Business Report is Ferrexpo's stakeholders, which is a group that includes employees, local community members, investors and governments in the countries where Ferrexpo operates, amongst others.

This report has been reviewed and approved for release by Ferrexpo's Executive Committee, which includes the Group's Chief Executive Officer, Jim North, in addition to the Health and Safety, Environment and Community Committee, which is a sub-committee of Ferrexpo's Board of Directors.

Through the publication of this report, Ferrexpo plc has reported in accordance with the GRI Standards for the period 1 January 2021 to 31 December 2021. The table outlining the relevant disclosures under this framework is provided in the appendices of this report (pages 69 to 76).

Other frameworks that this report aims to provide information under include: Sustainability Accounting Standards Board ("SASB") and the Task Force on Climate-Related Financial Disclosures ("TCFD"), with information for these frameworks provided in the Appendices from page 68 onwards.

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Image: CAT 793D haul truck descending the ramp into the Yeristovo open pit.

02	Ferrexpo plc Responsible Business Report 2021

INTRODUCTION	SUPPORTING UKRAINE	WORKFORCE	ENVIRONMENT	ETHICAL BUSINESS	COMMUNITIES	APPENDICES

About this report continued

Scope of this report

This report covers the Ferrexpo business, which includes pellet production facilities in central Ukraine, logistics operations in the Ukrainian port of Pivdennyi (southwest Ukraine), inland waterway business for shipping products along the River Danube, in addition to the Group's corporate and marketing offices around the world. Entities within the Ferrexpo business, as outlined on page 206 of the 2021 Annual Report and Accounts, are all included in this report if Ferrexpo holds a majority interest.

Data is consolidated on a 100% basis for all entities operated and controlled by Ferrexpo, rather than equity accounting.

References in this report to Ferrexpo, Group, Company, "we", "us" and "our" are all references to Ferrexpo plc and its subsidiaries.

External assurance

The Group has worked with its independent auditors MHA MacIntyre Hudson ("MHA") to complete an external assurance process (ISAE 3000) on its reporting of greenhouse gas emissions and key safety metrics for 2021, with more details of this project available on page 46 of this report and on the Group's website (www.ferrexpo.com).

Nature of this report

With Russia's invasion in 2022, Ukraine is fighting to protect its sovereignty and defend itself. In light of this, the front section of this report is primarily focused on the human stories behind Ferrexpo's operations, its people and local communities, which are provided in the form of case studies. This report is still, however, presented in accordance with the same reporting frameworks for sustainability in line with previous reports, with the reporting requirements for information predominantly provided in the Appendix to this report (page 68 onwards).

The majority of case studies presented in this report were written by Ferrexpo's team in Ukraine, helping to provide a first-hand account of life in Ukraine.

Image: Volodymyr Romenskiy, Stanislav Pechorkin and Evgeniy Evstropov, all excavator drivers at FYM, competing at Ferrexpo's annual "Best in profession competition".

03	Ferrexpo plc Responsible Business Report 2021

INTRODUCTION	SUPPORTING UKRAINE	WORKFORCE	ENVIRONMENT	ETHICAL BUSINESS	COMMUNITIES	APPENDICES

About this report continued

LOOKING TO THE FUTURE AND GREEN STEEL

For more than 50 years, Ferrexpo has supplied the global steel industry with a form of iron ore (being iron ore pellets) that reduces emissions for steelmakers. With an increasing focus on emissions reduction in every aspect of modern day living, a shift is underway in global steel production and steelmakers are specifically seeking to reduce their emissions, and the Group is well positioned to take advantage of this shift through the product is produces.

Ferrexpo is the world's third largest exporter of iron ore pellets, with operations in central Ukraine and customers across the globe that are served via a diverse logistics network. The Group has a workforce of more than 10,000 people in Ukraine, making it one of the largest employers in the Poltava region, and it is a significant contributor to the Ukrainian economy via a total of US$281 million of taxes and royalties in 2021 (2020: US$100 million). As a result of this presence, and more than US$3 billion of investment since listing in 2007 in producing high grade, high quality forms of iron ore, the Group has grown to be responsible for 4% of Ukraine's exports in 2021 (2020: 3%).

The Group is listed on the London Stock Exchange and headquartered in Switzerland. Ferrexpo is a constituent of the FTSE 250 and FTSE4Good Indices.

1 Source: Government of Western Australia.

Latest available period: 12 months to June 2021. Linkhere (accessed July 2022).

Image: Freshly made "green pellets" prior to being heated to 1,300oC in the Group's pelletiser.

	INVESTING IN PEOPLE		INVESTING IN UKRAINE	INVESTING IN QUALITY	INVESTING IN SAFETY
	10,000	+US$3BN	100%	0.41
	Ferrexpo has a workforce of		Ferrexpo has invested more	Ferrexpo's products are entirely	Lost time injury rate of 0.41
	more than 10,000 people in		than US$3 billion since listing	comprised of high quality forms	represents third consecutive
	central Ukraine.		in 2007.	of iron ore in 2021.	year of safety performance
						ahead of peers in Australia1.

04	Ferrexpo plc Responsible Business Report 2021