Sustainability

We aim to achieve leadership positions in the industry, following highest standards of environmental, social and corporate responsibility, taking into account the requests and expectations of all stakeholders.

The Group supports the UN Sustainable Development Goals aimed at addressing significant economic, social and environmental issues of the world community. In our Sustainable Development Policy we focus on two of them that reflect our responsibility to society at most — ensuring economic growth, employment and decent work (UN Goal No.8) and creating a rational model of resource consumption and production (UN Goal No.12).

Sustainability is an integral part of our business, operations and standards, a driver of increasing long—term value and positive effects for all stakeholders.

The Group strives to implement the principles of sustainable development in all aspects of its activities. Sustainable development management is fully integrated into the Group’s overall corporate governance practicies. Therefore, the entire management is also responsible for sustainability. Operational implementation takes place in the divisions and along the value chain.

To ensure the effectiveness of the Group’s activities, integrated management systems (IMS) have been implemented and certified that meet the requirements of international standards:

We are committed to understand the evolving expectations of our interested parties, so we might utilize the arising opportunities and minimize risks. On the course to create a sustainable product portfolio and increase the efficiency of production activities the Group sets the following goals:

• Interaction with consumers, scientific organizations to improve our operational performance and market most consistent and innovative solutions and products
• Promoting the creation of a closed-cycle economy, maintaining a rational balance of production and resource consumption, mitigating the carbon footprint, reducing the use of raw-materials and energy
• Adaptive innovations, including continuous work to improve production processes and applied technologies in accordance with the most modern solutions

There is active cooperation with specialized scientific organizations, representatives of the Group regularly participate in the largest scientific and practical conferences. The Technological Development Center and production sites of the Group are regularly visited by students of specialized federal universities — the Faculty of Geology of the Lomonosov Moscow State University, D. Mendeleev University of Chemical Technology of Russia, Novovosibirsk State University and regional institutions of higher education.

Magnezit Group certainly complies with all relevant requirements in the field of environmental protection, consistently develops and implements effective environmental management systems in accordance with best international practices. The assessment of environmental factors is an integrated part the business planning process — the development and approval of any investment project is taking into account its potential impact on the environment, and at least 20% of funds are invested to minimize emissions, lower energy and resource consumption. Modern production complexes of the Group utilize recyclable water and heat, efficiently use raw materials, ensure that all dust is captured and returned to production.

The Environmental Policy of Magnezit Group sets strategic pillars of the Groups environmental protection activities. It provides for identifying, monitoring and control of adverse impacts, the use of its principles in the supply chain, as well as full transparency and cooperation with stakeholders. Magnezit Group was one of the pioneers to sign an agreement on environmental protection with the Government of the Chelyabinsk Region and took additional commitments to reduce its ecological footprint. Total investments under this agreement exceed 3 billion rubles.

The success of the Group directly contributes to the social and economic stability of the regions of its presence. The Group builds open partnerships with stakeholders and actively participates and invests in initiatives to improve the quality of life of the local population — the development of urban infrastructure, support for culture, science and education, sports.

Being a large employer and taxpayer, the Group also provides stable employment for its employees, adds jobs in local service and contracting organizations.

The Magnezit Group’s Social Investment Policy is based on the principles of transparency, partnership, responsibility and mutual respect of all interested parties. A deep understanding of the existing needs of local communities, which is necessary for the implementation of truly popular social projects and programmes, is based on the variety of communication channels with residents and active participation of the Group in advisory bodies at all levels of government and public organizations.

Development of a corporate culture that promotes the effective work of the team, respect for human rights and ensuring the highest attainable level of industrial safety is imperative for our continued business success. Therefore it is a major commitment of our sustainability strategy

We have adopted the principles of the International Standard ISO 45001 for our management system and we are fostering a culture in which we all take responsibility for our own health and safety, and that of others. We built our culture of safety on continuous improvement, learning and innovation. Teammates take a proactive, collaborative approach to all aspects of product and industrial safety compliance. In any situation, every employee is empowered and encouraged to speak up if they have any safety or quality concern.

Aligned with our commitment to give our employees the tools and skills they need to mitigate any risks, we continue to improve our corporate culture, 
both in the areas of short-term safety and long-term health impacts of our operations.

Our commitment to human rights is fundamental to our values

Magnezit Group operates in the Russian Federation, where a well-developed legal system makes human rights violations nearly impossible. Thus, complying with national legislation, the Group automatically fulfills the requirements of the key conventions of the International Labour Organization in the field of human rights.

Nevertheless, our own internal regulations, in particular the Human rights Policy, proclaim the principles of equal opportunities, the exclusion of discrimination in any form, the prohibition of forced and child labor, freedom of association and the provision of decent working conditions.

We work hard to make our Human rights Policy commitments an integral part of the Group's culture, management systems and everyday activities.