In accordance with MMK CEO Pavel Shilyaev’s directive “On the approval of the Energy Saving and Energy Efficiency Programme for 2021”, 56 measures aimed at saving electricity, fuel, drinking and service water, heat and air separation products were planned for Q2 2021. 96% of the planned measures for this period were implemented.

The economic benefits brought by measures to reduce consumption of energy resources at MMK Group amounted to over RUB 44.2 million per year. In particular, Q2 2021, energy consumption was reduced by 1.89 million kWh in annual terms, resulting in an economic saving of more than RUB 7 million. The main points of action in this area included, among others, replacing incandescent light bulbs with LED lamps, modernising lighting systems, decommissioning and replacing energy-intensive equipment and so on. In addition, the energy saving programme made it possible to save 9.5 thousand tonnes of fuel (worth the equivalent of almost RUB 34.5 million), about 1,665 Gcal of heat energy, 161 thousand cubic metres of compressed air and air separation products, and 810 cubic metres of drinking water. The volume of service water saved amounted to 1,639.5 thousand cubic metres.

The environmental dimension of MMK's energy saving activities is equally as important as the economic gain, which is in line with the Company's strategic focus on compliance with the goals and principles of sustainable development (ESG).

"This area of work becomes even more relevant in light of new international environmental requirements and the expected introduction of the so-called 'carbon tax' in our strategic markets. Therefore. the Group's updated strategy envisages a reduction in specific CO2 emissions per tonne of steel to average global levels, or even lower, by 2025. We also aim to radically reduce our emissions of nitrogen oxides, sulphur dioxide and dust. These goals are expected to be achieved through improved energy efficiency and further modernisation of production facilities. In 2020, MMK was awarded the international Energy Management Insight Awards for energy saving and energy efficiency of production in accordance with the ISO 50001 international standard, which demonstrates the Company's commitment to ESG principles and energy policy efficiency," said MMK CEO Pavel Shilyaev.

Overall, the implementation of energy saving projects (including fast-payback, low-cost initiatives and energy service contracts) at MMK Group brought an economic effect of RUB 534 million in the first half of 2021.