Magnitogorsk Iron and Steel Works’ (MMK) energy management system (EMS) has passed a certification audit for compliance with the national standard GOST R ISO 50001-2023.

The Company has been using its EMS to reduce energy costs since 2016. In December 2022, MMK’s EMS passed a certification audit for compliance with the national standard GOST R ISO 50001-2012. MMK is one of the first companies this year to certify its EMS in line with the new 2023 national standard. Based on the audit, the certification body, Rostekhsert, recognised MMK’s EMS as an effective system that is fully compliant with GOST R ISO 50001-2023. No issues of non-compliance or deviations from the requirements of the standard were identified during the audit.

The following are among the most important steps MMK Group is taking to improve the energy efficiency of its production processes:

· Introducing energy-efficiency ideas. In the first half of 2023, employees submitted 577 energy-efficiency ideas to the corporate Energy Management Platform (EMP) app, 132 of which were implemented. The projects are expected to save the Company RUB 35.7 million.

· Low-budget, high-impact projects (baby-capex). Four baby-capex projects have been implemented, saving RUB 16.4 million.

· Energy service contracts. Work is under way to upgrade the lighting systems used in production shops. This effort is expected to save RUB 73.2 million.

· Reducing the cost of purchased electricity by regulating the volume of electricity generated by the Company’s own power plants, repairing power equipment during off-peak hours and reducing energy consumption during peak hours. These efforts are expected to save RUB 208 million.

In 2022, MMK received an Energy Management Insight Award for its leadership in energy management. These international awards recognise companies’ efforts to save energy and improve the energy efficiency of their production process in accordance with the international standard ISO 50001.