Annual Report & Accounts 2015

Community Relations

EVRAZ donates RUB300,000 to children’s photo studio in Nizhny Tagil

In 2015, EVRAZ donated RUB300,000 to buy professional equipment for a children’s photo studio, which organises photo-therapy sessions for children with disabilities. The funds were used to buy light reflectors, timers, filters, a projector and new decorations for the interior. The equipment has already been tested at sessions. EVRAZ earlier pledged funds for equipping the studio, and five professional cameras, flashes and various interior items were bought.

Photo-therapy can help children to socially adjust, develop their creative talents and feel positive. The initiative is part of the EVRAZ-Children charitable project.

Governance and approach

EVRAZ seeks an ongoing dialogue with the communities in which it operates. The Group is a responsible taxpayer and employer. All of its enterprises operate in accordance with federal and local legislation. Managing directors and regional vice-presidents are responsible for communication with local governments. HSE directors are responsible for ensuring that plants’ activities are line with the applicable rules and regulations. The regional corporate communications centres are responsible for communicating with non-commercial organisations on charity, environmental, social, educational and sport projects.

Relations with local communities

EVRAZ contributes to local economies in many ways it can, supporting communities in which it operates.

The Group focuses on stable partnerships with local communities and strives to improve quality of life in its regions of presence. It develops socially responsible programmes that support children with special needs, veterans and old people, children’s homes, as well as cultural, educational and sport projects, city infrastructure, and projects to reduce environmental impact. EVRAZ takes its role as a taxpayer and employer seriously, offering employees development, training programmes, social protection and regionally competitive salaries. EVRAZ is a committed partner with local governments: it helps to solve challenging regional issuesIn 2015 Financial statements EBITDA calculations exclude social and social infrastructure maintenance expenses..

Relations with local communities awards in 2015
Business Unit Award Awarding organisation Comments
EVRAZ NTMK “Best Philanthropists of Nizhny Tagil” Nizhny Tagil city government EVRAZ NTMK was awarded as one of the best philanthropists of the city.
EVRAZ National contest “Leaders of Corporate Social Responsibility”. EVRAZ charity project received an award in the nomination “Best Project That Helps to Promote Initiatives of Non-commercial and Charity Organisations in the Regions Where the Company Operates”. Non-commercial organisation “The Donors’ Forum”, Vedomosti and PwC The project “EVRAZ: City of Friends — City of Ideas” won an award for the second time. Social projects of non-commercial organisations in Kachkanar city take part in the contest to receive financing for their projects.
2015 Projects for Local Communities Development
Name Description Results in 2015
“EVRAZ: City of Friends — City of Ideas” The main goal is to improve the quality of life in Kachkanar: develop culture, sport, education, and help old people and children with special needs.
Non-commercial organisations present their social projects. The jury selects 10–15 winners, who receive up to RUB100 thousand to implement their projects.
In 2015, the jury chose 13 winners who received money grants for their projects. During 7 years more than 60 social projects were implemented in Kachkanar.
EVRAZ for Kids The main goal is to support children who have special needs and/or are socially vulnerable.
EVRAZ organises special treatment and voluntary support for children with cerebral palsy and their families in the Urals and Siberia, and supports socially vulnerable children.
Every year more than 500 kids with special needs get special medical treatment sponsored by EVRAZ. The Group supports cutting edge treatment techniques — photo therapy, art therapy, aqua therapy, hippo therapy, adaptive sports, massage courses for kids and training programs for their parents. Every year EVRAZ provides more than 3 thousand New year presents in Russia, organizes annual voluntary campaigns to provide books, office stationery, sport equipment and clothes for the start of school year.
EVRAZ for Cities EVRAZ supports local infrastructure in the cities where it operates.
EVRAZ donates funds for reconstructing roads, parks and theatres, and for equipping schools, colleges and medical centres.
In 2015, EVRAZ supported the renovation of the Garden of Steelworkers in Novokuznetsk. Every year, the Group organises a competition for the best projects for residential courtyards. The winners receive playgrounds for their yards, and nine were installed in 2015.
In 2015, EVRAZ supported the reconstruction of the road on the Kuznetsky bridge in Novokuznetsk.
EVRAZ for Sport EVRAZ supports amateur and professional sports teams and sportspeople, both children and adults.
EVRAZ provides sport equipment and donates money towards preparing for and participating in different tournaments. In 2015, the Group also organized charity 5-km marathons in Novokuznetsk and Nizhny Tagil for employees, citizens and their children. Some 2 thousand people took part in the race, and about 6 thousand attended a city festival. The funds raised were donated to charity.
EVRAZ organised city festivals in Nizhny Tagil and Novokuznetsk, promoted sport and a healthy lifestyle, and raised money for charity. The Group also supported the reconstruction of a football stadium and renovation of the swimming pool in Kachkanar.
Big Siberian Road Tour EVRAZ helps to develop culture in the regions where it operates.
EVRAZ supported the road tour of Siberian theatres.
In summer, Siberian theatre companies put on shows in Novokuznetsk theatres.
Reading Sparks®programme The EVRAZ Reading Sparks®programme promotes children’s literacy in North America. EVRAZ North America has provided, furnished and stocked numerous libraries and reading areas at elementary schools. In addition, it is in its third year of sponsoring the “Battle of the Books” in the 39 Regina, Saskatchewan, school system in Canada. Also in Regina, EVRAZ has provided books for United Way’s Classroom Libraries programme, funded the purchase of dual-language books for 15 Regina elementary schools in English and 58 other languages, and is a gold-level sponsor of the Saskatchewan Young Readers Association. In addition, EVRAZ continue its multi-year support for an extensive reading and writing programme for Colorado’s Pueblo City Schools. EVRAZ Reading Sparks volunteers helped to organise and distribute more than 400,000 new books to agencies, organisations and schools serving low-income children in collaboration with Executives Partnering to Invest in Children (EPIC). In Portland, Oregon, EVRAZ funded the purchase of 500 books for a local elementary school.
Scholarship Fund for Canadian Aboriginals The fund assists students attending the Universities of Alberta and Regina, Notre Dame College, Northern Alberta Institute of Technology and Saskatchewan Polytechnic. EVRAZ North America sponsored the fund in 2015.
Hosting a recreational area adjacent to EVRAZ Regina facility EVRAZ continues to host a recreational area adjacent to its Regina facility for members of the community. The long established and recently refreshed EVRAZ Park, open from May to September, features a swimming pool, playground, picnic facilities and prairie animals and is enjoyed by schools as a favourite field trip destination and by many Regina families throughout the community. EVRAZ supported the project in 2015.
Sponsorship of the Enbridge®Alberta Ride to Conquer Cancer® EVRAZ is the presenting sponsor of the Enbridge Alberta Ride to Conquer Cancer, benefiting the Alberta Cancer Foundation. In August, a two-day, 200-kmbicycle ride through the Canadian Rockies raised US$7.8 million for cancer research, clinical trials, enhanced care and the discovery of new cancer therapies at 16 cancer centers across Alberta, Canada.
Sponsorship of First Growth Children and Family Charities EVRAZ supports this annual Portland, Oregon fundraiser benefiting local charities. In 2015, more than $3.2 million was raised for First Growth Children and Family Charities such as the YWCA of Clark County, Randall Children’s Hospital, New Avenues for Youth, Metropolitan Family Services and Friends of the Children.
Participation in public organisations and initiatives
Non-commercial partnership “Rail commission” The participants include rail producers, Russian Railways, research institutes and certification centres.
The commission is aimed at sharing the best practices in rail production, solving challenging issues, implementing new technologies and products, and developing the industry.
EVRAZ has been participating in the organisation since 2007.
Non-commercial partnership “Russian Steel” An association of Russian iron and steel producers. Its main goal is to represent of interests of Russian iron and steel producers.
Members of Russian Steel account for the majority of national iron and steel production:
  • 98% of pig iron,
  • 90% of crude steel, rolled products and substantial share of steel raw materials.

EVRAZ has been participating in the organisation since 2001.
Steel Construction Development Association The association is aimed at promoting the usage of steel constructions in civil buildings, mainly to substitute cement. The association unites steelmakers, mills producing steel constructions, research institutes, design engineers and developers.
EVRAZ has been participating in the organisation since 2014.
The union of rail equipmen producers The union unites manufacturers of railway products, railway transport firms and Russian Railways. It aims to develop technical regulation and rail transport.
EVRAZ has been participating in the organisation since 2007. Sergey Palkin, director for technical regulation of railway products is vice-president and a member of the supervisory board.
“Association of Russian Steelworkers” employers union The association aims to:
  • Represent and protect of the rights and legitimate interests of its members in their relations with government bodies, trade unions, and other associations, institutions and organisations;
  • Coordinate activities regarding social and labour and related economic issues.

The association comprises 10 key Russian metallurgical companies.
EVRAZ has been participating in the organisation since 2008. EVRAZ vice-president for Personnel, Natalia Ionova, is a member of the board.
National Association of Mineral Resources Examination The association unites industrial enterprises, design and expert organisations. It aims to promote the creation of a highly efficient, innovation-oriented, internationally integrated system of geological study of mineral resources and the development of mineral resources in Russia by consolidating the efforts of professional participants.
EVRAZ has been participating in the organisation since 2004. Vladimir Sheglov, technical director for iron ore assets represents EVRAZ at the Association.