Environment protection
Protection of the environment is one of the top priorities of the Company’s operations. The principal steel and metal production related business can only show sustained development if the negative impact of economic activity on the environment is minimized. This is the basis of the Company’s ecological policy. Being a leader in the Russian and global steel industry, the Company is aware of its important role and responsibility for national and global processes of sustainable development.
The mission, goals and strategy of NLMK’s environmental policy is set out in a key document - «Environmental Policy of Novolipetsk Steel». According to this document, NLMK strives for a reduced impact on the environment from production activities as well as aiming to provide a favorable living environment for the community of Lipetsk and Lipetsk region.
We base our environment protection activities on the following principles:
• Conducting business in a socially and environmentally responsible manner;
• Using best available techniques;
• Preventing environmental pollution;
• Environmentally friendly approach towards nature components (water, soil, plants);
• Reducing the generation and accumulation of wastes during production and consumption.
Between 2000 and 2008 Novolipetsk Steel increased steel production by 3.6%, pig iron – by 9.2%, sinter ore - by 6%.
Despite the increase of crude steel production, the level of negative impact on the environment gradually went down. During phase 1 of our Technical Upgrading and Development Programme we achieved positive results in reducing the impact of the Company’s activities on the environment. The complex indicator of Lipetsk city atmospheric pollution, based on information obtained from regional center of Roshydromet (Russian Federal Agency for Hydrometeorology and Environmental monitoring), went down 3 fold from 25 units in 2000 to 8.5 in 2008.
The decrease in environmental impact indicators was directly connected to continually growing ecological investments by NLMK. The environmental expenditures of the Company have increased more than elevenfold since 2000, increasing from RUR129.8 mln. in 2000 to RUR2.6 bn in 2008.
The long-term plans of the Company envisage an increase in environmental investments. It will enable the Company to rank among the best European companies in terms of environmental protection by 2012, thus strengthening its competitive advantages contributing to the Company’s sustainable development. All this will help the Company completely adhere to the world’s environmental standards.
Atmospheric emissions.
The results of gas emissions measurements in the area of NLMK’s production site are evidence of significant positive changes. In 2008, excess readings for 3 substances were noted and a number of measurements with standard excess accounted for not more 38% for naphthalene, 5% for dust and 21% for phenol. By comparison, 2000 witnessed excess air pollution readings for 8 substances and the share of measurements with standard excess accounted for 80%.
Gross emissions between 2000 and 2008 went down by 21% from 355.7 to 280.5 thousand tonnes per annum. In 2008, there was an additional decrease in gross emissions by 27,800 tonnes or by 1.1 kg per tonne of steel produced y-o-y.
Water.
During the 8 year period, the Company succeeded in cutting water use and mitigating the detrimental impact of effluent discharge. River water use went down by 26% to 71.2 mln. m3 per annum. Additionally, NLMK decreased the volume of industrial effluents by 25% to 46.0 mln. m3 per annum, and discharge of pollutants together with industrial effluents by 34% to 8,100 tonnes per annum.
In 2006, the Company completed the first stage of the upgrade of Lipetsk’s and NLMK’s interconnected sewerage treatment plants, investing RUR 273.8 mln. from its own funds into this project. The waste treatment plants of Lipetsk are owned by NLMK, which is unique in steel industry practice. They are served and reconstructed at the expense of the Company despite its insignificant (around 12%) share of the city’s sewage.
Wastes.
By implementing modern technologies, NLMK manages to neutralize and re-use over 95% of wastes produced in production processes. Owing to this fact, 2004 saw the end of the accumulation of process wastes in the territory of the production site and the start of processing of wastes accumulated earlier. On the whole, between 2000 and 2007 the volumes of wastes previously accumulated were cut down by 19% by over 1.8 mln. t.
Environment Management Quality Standards. According to its «Environmental Policy», NLMK strives to conform with international standards, Russian law and Environment Quality Standards.
In 2005, the Company successfully passed an independent certification audit of its Environment Management System for compliance with International Standard ISO-14001 in the new edition of 2004. The Company was granted a license by Roshydromet, with the right to monitor man-made impact on the environment.
Cooperation with the government. The Company continually strives for cooperation with the governmental bodies in the area of environmental protection. This is expressed in an increase in the number of audits of the Company’s environment protection activity (from 7 in 2005 to 23 in 2008) by the following state authorities:
- Office of technological and ecological surveillance of Rostekhnadzor in Lipetsk region;
- Regional office of Federal Supervision Service in the sphere of consumer rights and human wealth protection (“Rospotrebnadzor”) in Lipetsk region;
- Regional office Russia’s Federal Service for Supervising Natural Resources (Rosprirodnadzor) in Lipetsk region;
- Inter-regional office of Public Prosecutor for Environment protection;
- Accounts Chamber of the Russian Federation for the period 2000-2005 (summer 2006).
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