Severstal : Sustainability strategy

Severstal

Sustainability strategy

Approved by the Board of Directors

on 01.02.2023

Our approach

Sustainable development is a cornerstone of Severstal's strategy and corporate culture. The Company has more than ten years' experience in implementing best sustainability practices and leading projects on Russian and global market, such as a project for the integrated development of Cherepovets, a city where the Company's key asset is located, with investments exceeding

1.5 billion rubles, and activities under the Clean Air project. We as well develop partnerships for sustainable development, including the Climate Memorandum.

Severstal for the first time set public sustainability goals in 2020 and regularly reports on progress against these goals and implemented measures

in theSustainability Report.

For each of the sustainability key topics, including environmental protection, climate change mitigation, care for employees and local communities, customers and suppliers, the Company has developed an action plan. The Board Safety and Sustainability Committee oversees the measures implementation. With the growing importance of sustainability issues for our stakeholders Severstal developed a comprehensive Sustainability strategy. The strategy includes 8 priority pillars that have been identified taking into account the Company's impacts on society and environment, industry specifics and stakeholders expectations.

We believe that expanding the list of the Company's public sustainability goals is an important signal to the market that we aim to maintain all the undertaken activities even in the difficult macroeconomic conditions.

It is strictly forbidden to use, copy, disclose or distribute materials contained in this document	2
(or appendices hereto) in any way whatsoever without due authorization.

Sources of the strategic goals

Severstal's Sustainability strategy is balanced and reflects the interests of all stakeholders

and the industry's competitive environment requirements

Our knowledge and experience

• Current Business Strategy and Health
  and Safety Strategy
• Current sustainability initiatives
• Decarbonization strategy

Key stakeholders' requirements and expectations

• Clients and customers	• Government
• Employees	• Business and public
• Local communities	organizations
• Scientific, cultural, educational,
• Shareholders and investors
health care organizations
• Business partners

Global best practices

• Practices of the best global and Russian metals and mining companies and other industries leaders
• The best available technologies

International	ESG ratings
initiatives	requirements

Strategy: priorities, goals, practices and KPIs

It is strictly forbidden to use, copy, disclose or distribute materials contained in this document	3
(or appendices hereto) in any way whatsoever without due authorization.

Our priorities

Superior	Cost
customer	leadership
experience

Strategic priorities

New	Corporate
opportunities	culture
	improvement

Severstal links

the company's strategic priorities to the United Nations Sustainable Development Goals (UN SDGs)

It is strictly forbidden to use, copy, disclose or distribute materials contained in this document	4
(or appendices hereto) in any way whatsoever without due authorization.

Our priorities

Main pillars of the Company's sustainability activities

Our contribution to achieving the UN Sustainable Development Goals

• Air quality
• Climate change mitigation
• Waste management
• Water resources protection

• Working conditions
• Occupational health and safety

• Сorporate governance improvement

It is strictly forbidden to use, copy, disclose or distribute materials contained in this document	5
(or appendices hereto) in any way whatsoever without due authorization.