Management approach

We believe the prosperity of our business is ultimately linked to the success of the regions where we operate and the fulfilment of local communities. Hence transparent and constructive cooperation is a fundamental value embraced and upheld in all EVRAZ activities.

EVRAZ has a significant positive impact on the economic and social development of the regions where we operate. We strive to build effective and sustainable partnerships with local communities by adhering to the best international standards of sustainable development. EVRAZ has created a wide variety of initiatives aimed at fostering the comprehensive development of local communities and ensuring the well-being of their residents. Our key projects include improving local infrastructure, supporting and financing programmes for children, sponsoring sports teams, and protecting the environment.

Since the Group’s enterprises are city-forming in many regions of operation (in cities such as, for example, Nizhny Tagil and Novokuznetsk), EVRAZ is a key employer in these locations. We contribute to the prosperity of local communities via prioritizing local recruitment and creating decent working conditions for local people.

We are always ready for an open dialogue with local communities, government authorities and other stakeholders. EVRAZ actively uses various channels of communication and grievance mechanisms. Thus, local communities and other stakeholders can contact us via the Hotline service on any matter that lies within the boundaries of EVRAZ’ responsibility.

GRI 413–1

EVRAZ has implemented an effective system for managing local community relations and external communications at various corporate levels of the Group. The headquarters are responsible for engaging with and executing projects with stakeholders at a national level, as well as elaborating and implementing strategic priorities and guidelines. At regional level the key engagement responsibilities of implementing and supporting local programmes are borne by the GR and PR departments of EVRAZ entities. At EVRAZ North America (ENA), the Group’s community relations are monitored by the Director of Communications and Government Affairs, with supervision from the Senior Vice President of Human Resources.

Strategic goal for local communities

EVRAZ sees that business sustainability is ultimately linked to the success of the communities in the regions where we operate, and we support these through social and improvement programmes.

Key documents
Document Description
Code of Business Conduct
Please see on EVRAZ corporate website
The Code of Business Conduct contains the philosophy and principles underlying the corporate culture and ethics of EVRAZ.
The Code states that the Group commits to working with local communities, with a view to facilitating their development and well-being.
Social Investment Guidelines
Please see on EVRAZ corporate website
Our local community engagement approach. Outlines the Group’s priorities and eligibility criteria for social investments.
Anti-Corruption Policy
(incl. Principles of Charitable Donation and Sponsorship Activity, and Regulation of Interaction with Authorities and Public Officials)
Please see on EVRAZ corporate website
The Policy states our approach to corruption prevention, ensuring ethical business conduct and compliance with applicable anti-corruption legislation, including matters related to donation, sponsorship and interaction with authorities.

A transparent and open dialogue with representatives from local communities allows us to identify and understand their key needs. Therefore, we implement only those initiatives that are socially significant for the regions where we operate. The Group annually prepares a Social Investment Programme to set the priorities and budget for social investment for the year ahead. We publish the report on implementing the Social Investment Programme at the end of each year.

EVRAZ operates two charity funds in Siberia and the Urals, which are managed by supervisory boards. The charity funds adhere to the EVRAZ Charity policy and Social Investment Guidelines and set target investment objectives. The key areas of donation are support for orphanages and veterans, sports, cultural and educational projects, as well as medical organisations and environmental programmes.

Social expenses (incl. charity), 2020, US$ million

In 2020 EVRAZ earmarked US$38 million for social expenses, which exceeded the previous year’s spending by 12%.

Under the Social Investment Guidelines, we do not support the following:

  • Organisations and programmes that influence legislation or elect candidates to state or local public offices.
  • Political, military, religious, and national or local governmental organisations and projects.

Our response to COVID-19

One of the main priorities of the Group is ensuring the safety and peace of the cities where EVRAZ enterprises are located.

Healthcare system support has been and remains a priority area of the Group’s charitable activities during the spread of the coronavirus infection. Throughout 2020 we supported healthcare institutions and will continue to do so. EVRAZ financed the purchase of medical equipment and personal protective equipment for hospitals and social institutions in the regions where we operate, and also funded the refurbishment and construction of new medical institutions, the opening of laboratories to test for COVID-19, and many other projects. In 2020 EVRAZ earmarked almost US$6 million for COVID-related expenses in the area of support to local communities.

In addition, the Group launched a series of information campaigns to raise awareness among residents about the rules of safe behaviour during a pandemic. EVRAZ volunteers also actively supported people vis-à-vis adapting to the current situation, and helped elderly people who had to adhere to strict lockdown conditions in the regions where we operate.

Case study People of indispensable professions: video about metallurgists working during the pandemic

EVRAZ, together with the publishing house Komsomolskaya Pravda, released a video featuring EVRAZ metallurgists and miners that continued to work during the pandemic, so that construction projects would not be halted in Russia, railways could expand, and coal and necessary ore extraction works continue.

Case study Iron Rules series of illustrations

Together with the famous Internet artist Anton Gudim, EVRAZ looked at the new realities of living in a pandemic, and created a series of illustrations aimed at drawing the attention of people, and especially the employees of the Group, to new conditions for safe social interaction, as well as other issues related to the COVID-19 pandemic.