Sustainable development

Environment

Environment

In 2019, TMK adopted a new Environmental policy and developed its Implementation Concept. These documents define our goals, priorities, environmental performance indicators, as well as implementation and monitoring mechanisms.

Environmental management systems

The Company continuously improves its environmental management system so that an objective assessment is made of potential environmental risks in the production operations, and the Group can install measures to prevent or minimize their negative impact.

In 2019, eleven of the Company plants passed supervisory audits to confirm the compliance of their certified environmental management system with ISO 14001:2015.

Financing environmental protection activities

TMK invests significantly in environmental protection and stewardship every year, with environmental expenditures in 2019 totaling approximately $37 million.

The Company’s environmental investments over the last five years totaled over $30 million, including approximately $6.5 million in 2019.

Key capex projects in 2019:

- Seversky Pipe Plant:

– Completed construction of local water reuse treatment facilities for a heat treatment facility, which will help reuse up to 20 million cu m of treated water

– Upgrade of the gas treatment unit of Lime Kiln No. 1 is underway

- Volzhsky Pipe Plant:

– Completed construction of a mechanical draft cooling tower out of prefabricated parts

– Cell No. 2 of the industrial waste landfill covered; completed construction of cell No. 9 for waste of hazard classes 4 and 5

- Sinarsky Pipe Plant completed construction of a cooling tower for reusable water and reduced discharge of solids and petroleum products

- TAGMET completed installation and commissioned dust control and gas cleaning units at the ferro-alloy and lumps preparation facility

TMK-ARTROM upgraded a neutralization station

 

Key aspects of TMK’s environmental activities

Ambient air protection

TMK’s facilities comply with the legislation covering air emissions inventory, regulation, and control, as well as operations in adverse weather conditions. Our emissions control activities ensure compliance with the prescribed air emissions limits.

In order to reduce pollutant emissions into the ambient air, the Company took measures to improve gas cleaning performance, control emissions in adverse weather conditions, as well as contain, redirect, and clean dust and gas flows. TMK’s air pollution control expenditures totaled $4 million in 2019.

Climate responsibility

TMK considers carbon footprint when defining its development strategy, with the carbon agenda incorporated into risk management and business processes.

GHG emissions are calculated on an annual basis. GHG emissions in the Russian division are calculated in accordance with the Methodology Recommendations and Guidelines for Quantitative Determination of Greenhouse Gas Emissions from Organizations Conducting Economic and Other Activities in the Russian Federation approved by Order No. 300 of the Ministry of Natural Resources and Environment of the Russian Federation dated June 30, 2015.

The European division entities comply with local carbon laws and submit GHG emission verification reports and monitoring plans to supervisory bodies in due time.

TMK is implementing a Programme to Improve Energy Efficiency and Fuel and Energy Saving, optimizing operations and improving process solutions. As a result, total tonnes of GHG emissions decreased by 4% year-on-year in 2019. Direct GHG emissions totaled 1.296 mln tonnes of CO2 equivalent.

Protection and sustainable use of water

Subject to permits, TMK’s facilities abstract water from surface and underground sources to supply water for production, general and drinking, and process use, and public needs.

Water reuse or recycling is a mandatory requirement for commissioning any of TMK’s new, upgraded or revamped facilities. In 2019, the volume of recycled or reused water totaled 502 million cu m. Percentage of water recycled and reused by TMK’s Russian plants stood at 95.7%. The high percentage of reused and recycled water reduces water withdrawal and wastewater discharge.

Key initiatives implemented in 2019 to mitigate impact on water bodies: building and upgrading treatment facilities; organizational measures to prevent spills, leaks, and unsustainable use of water; enhancing water recycling and reuse systems. TMK spent $17.8 million on sustainable water use and water pollution control in 2019.

Progress vs. 2018:

- 4% decrease in total water consumption
- 5% reduction in water consumption in production
- 3% reduction in wastewater discharge to natural water bodies

The success of our sustainable water use efforts is demonstrated by the positive changes in TMK Group’s water consumption.

Waste management

TMK’s environmental programmes aimed at increasing waste recycling and reducing waste landfilling achieved good results: 93% of total waste generated by production processes (621,000 tonnes in 2019) are used, treated, or processed.

Key results of TMK’s consistent environmental activities in 2019:

- Total waste decreased by 9%
- Internal waste processing increased by 4%
- 64% of total waste treated and used internally and 5% disposed of at our own designated facilities – an excellent waste management performance
- 31% of total waste turned over to licensed specialist contractors

Waste is managed in accordance with approved instructions and corporate standards. Our waste disposal and temporary storage sites are subject to industrial environmental monitoring. In 2019, we spent $6.4 million on efforts to minimize the impacts of our waste on the environment, including approximately $1 million on land protection (disturbed land rehabilitation, etc.).

Environmental and industrial monitoring

Our plants are continuously monitoring the areas affected by their production facilities for environmental impact, leveraging a high-performance industrial environmental monitoring system. All of the Russian division’s plants have certified chemical laboratories equipped with all necessary state-of-the-art equipment. In accordance with accreditation requirements, our laboratories participate in interlaboratory comparisons for experimental confirmation of their proficiency.

Monitoring targets:

– Non-fugitive emissions
– Ambient air quality on the buffer zone boundary
– Physical impact levels (noise pollution)
– Surface, ground and wastewater quality
– Soil condition

Environmental education and training

In 2019, over 1,800 employees completed external environmental training, were upskilled or received environmental protection briefings.

Main areas for personnel training:

– Environmental management system
– Environmental safety
– Handling waste of hazard categories 1 to 5

Those TMK employees who are interested in the basics of environmental legislation and the environmental aspects of TMK Group’s operations have the option of studying the Ecology for Nonecologists course in TMK’s Corporate University TMK2U.

Company experts actively participate in environmental workshops, conferences and other events held by government bodies or non-governmental organizations.

The Company’s facilities also provide environmental safety briefings to its contractors.

TMK also runs environmental initiatives, tours, open lessons and lectures for school and university students to improve environmental awareness in its operating regions.

Public recognition

In 2019, Volzhsky Pipe Plant and TAGMET won the award of the 15th Russian contest Environment Leader of Russia 2019 in the Best Environmentally Responsible Steel Company category.

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