HSE and Human Capital

Health, safety and environment

Strategic goal

One of EVRAZ’ top priorities is protecting its employees’ health and safety, as well as preserving the environment in its areas of operation. In 2017, the Group’s strategic goal remains unchanged: achieving and maintaining a lost-time injury frequency rate (LTIFR) of below 1.0 by 2021. See page Health and safety.

Overview

Implementing behaviour safety conversations and standard safe operating procedures are two major initiatives launched in 2017. During the year, the Group’s employees conducted half a million safety conversations. We also made extra efforts to improve the quality of our safety reporting. On the ecological front, we completed three environmental projects and launched four new initiatives last year, mainly in the Urals and Siberia. See page Environmental management.

Outlook

In 2018, EVRAZ will begin to implement a contractor safety programme. We will also continue our ongoing efforts to improve the quality of safety conversations and standard safe operating procedures. Two major ecological issues that EVRAZ will proactively manage in 2018 are high sulphur content in iron ore and waste management.

LTIFR (excluding fatalities), per 1 million hours

Despite the Group’s efforts, there were ten fatalities (six employees and four contractors) at its sites in 2017, while the LTIFR dipped to 1.90, compared with 2.36 in 2016.

Human capital

Strategic goal

Engaged, motivated, loyal and competent employees are the key pillar of EVRAZ’ business. We strive to continuously improve productivity and establish world-class HR practices. See page Our people.

Overview

In 2017, the Group focused its human capital efforts on managing its employee engagement programme, developing the key competencies required for operations management, and centralising administrative functions in one shared service centre in Novokuznetsk, Siberia. Due to ongoing labour productivity improvements and asset divestments, total headcount decreased by more than 7,000 employees last year. During the year, we were also able to improve engagement by an average of 17% at key production sites. See page Our people.

Outlook

In 2018, the Group will continue its efforts to improve employee engagement, develop a new team framework for specific complex projects at its plants, and implement changes in the staff motivation system.

Labour productivity, steel, tonnes per person

The labour productivity per person for steel products grew by 7.6% to 352 tonnes per person in 2017, compared with 327 tonnes per person in 2016.

Diversity of employees, senior management and directors, % (number of people)

EVRAZ sees diversity as a crucial business driver and strives to ensure that all employees’ rights receive equal protection.

CSR review

EVRAZ is a socially responsible company, addressing and monitoring all aspects of corporate social responsibility (CSR) that are relevant to the business.

The CSR section of the annual report on pages CSR report provides an overview of the Group’s policies and performance in 2017 in key areas of CSR.